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Reuters: CIT Offers to Pay $75 Million to End Fraud Lawsuit

March 14, 2012, 06:15 AM
Filed Under: Bankruptcy
Related: Bankruptcy, CIT Group

Reuters reported CIT Group has asked a federal judge to approve a $75 million settlement proposal with former CIT shareholders in a class-action securities fraud lawsuit over actions preceding the large commercial lender's 2009 bankruptcy.

According to the report, the preliminary settlement, which was submitted to Manhattan federal court Judge Barbara Jones for approval, would put an end to a lawsuit brought on behalf of purchasers of CIT securities from Dec. 12, 2006 to March 5, 2008. CIT filed one of the five largest bankruptcies in U.S. history on Nov. 1, 2009, after loan losses surged. The New York-based company emerged in 2010 after a prepackaged reorganization. CIT's bankruptcy filing caused the government to lose the $2.3 billion in bailout money it had injected into CIT in December 2008.


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