New York, NY: A securities class action lawsuit brought against the now defunct IndyMac Bancorp looks as if it might be settled, as some leaders of the bank have agreed to pay $6.5 million for dismissal of the claims against them.
Former IndyMac CEO Michael W. Perry and Chief Financial Officer Scott Keys are named defendants in the class action lawsuit, which was brought shortly after the institution's collapse in July 2008. The lawsuit accused the defendants of making statements that concealed the true extent of IndyMac's deteriorating capital and liquidity as well as its growing exposure to regulatory action, among other claims.
According to a report by the Associated Press, IndyMac was one of the largest mortgage originators in the US, and its collapse marked one of the biggest bank failures in US history.
The securities lawsuit represents shareholders who bought IndyMac Bancorp stock from March 1, 2007 to May 12, 2008. A shareholders motion for preliminary approval was filed on July 2. If the settlement is granted final approval, it would eliminate the risk that shareholders recover nothing.
