NovaStar Financial Settles Class Action for $7.25 Million

NovaStar Financial Inc has reached a settlement in a class action securities fraud of $7.25 million. The suit, one of 5 launched against the company in mid-April, 2004, alleged that investors were misled by information that inferred the company had an increased number of brokerage offices throughout the country. However, some of these brokerage firms were later fined for not being properly registered or didn't actually exist.

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Published on Dec-11-08