Some leaders of the failed IndyMac Bancorp have agreed to settle a shareholder class-action lawsuit for $6.5 million.
The lawsuit names former IndyMac CEO Michael W. Perry and Chief Financial Officer Scott Keys as defendants.
IndyMac collapsed in July 2008, and the Federal Deposit Insurance Corp. took over California-based mortgage lender. IndyMac's collapse marked one of the biggest bank failures in U.S. history.
Plaintiffs in the lawsuit represent shareholders who bought the mortgage lender's stock from March 1, 2007 to May 12, 2008. The lawsuit accused the defendants of making statements that concealed the true extent of IndyMac's deteriorating capital and liquidity.
Federal court papers filed last week in California say the proposed settlement represents a reasonable resolution for the case and eliminates the chance that shareholders may recover nothing.
