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Kansas City-based mortgage lender agrees to $165 million settlement of class action suit

Mar 15, 2017 - The Kansas City Star

Investors have agreed to settle a nine-year class action lawsuit against Kansas City-based NovaStar Mortgage Inc. and three Wall Street banks over investment losses tied to subprime mortgages.

The settlement calls for a $165 million cash payment from NovaStar Mortgage, Royal Bank of Scotland, Wells Fargo and Deutsche Bank, according to a statement from the investors' attorneys. All four had been sued after the investors -- including the New Jersey Carpenters Health Fund and the Iowa Public...