Thirteen former officers and directors of New Century Financial Corp., an Irvine, California-based mortgage finance company that collapsed in 2007, have agreed to the preliminary settlement of the securities class action pending against them in the C.D. of California. The case, originally filed in February 2007, was one of the first subprime cases and stems from disclosures relating to the company’s loan-repurchase losses.
The settlement is for $65 million, which will be funded by the individuals’ insurers. In addition, KPMG will pay $45 million and the underwriter defendants will pay $15 million to settle the related claims against those entities.