Kevin Reed, Accountancy Age, Tuesday 3 August 2010 at 08:45:00

KPMG US nears its $24m settlement over Countrywide litigation

A $24m (15m) settlement by KPMG in the US over its audit work at Countrywidehas been granted preliminary approval by a federal judge.

Bank of America, which owns Countrywide, agreed in May to pay $600m toresolve class-action litigation, with KPMG agreeing $24m.

The final hearing on the settlement is likely to be held on 15 November,reported Reuters.

Pensions funds had alleged that Countrywide's chief executive and otherofficials had misrepresented the lender's reliance on sub-prime and adjustablerate mortgages.

Further reading:

Investorssue BoA after predatory lending case