April 17 (Reuters) – Bank of America Corp has reached a record $500 million settlement with investors who claimed they were misled by its Countrywide unit into buying risky mortgage securities.
The settlement requires the court approval, and is the largest accord to date resolving a federal securities class-action case over mortgage-backed securities, lawyers for the plaintiffs said on Wednesday.
Investors had accused Countrywide and other defendants of misrepresenting the risks of securities they sold between January 2005 and November 2007.
Countrywide was at the time the largest U.S. mortgage lender, and specialized in loans to people with weaker credit histories or who could not fully document their ability to pay.
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