Fortress Investment Group’s lender acquired from American International Group Inc. (AIG) may owe as much as $68.7 million after losing a state court ruling over laws designed to protect mortgage borrowers, Bloomberg gurus tell us..
A South Carolina judge issued an interim order on July 29 saying that a class of 9,157 people could recover damages through a law that entitles customers to select “who will represent the borrower in closing the loan,” Springleaf Finance Corp. said today in a regulatory filing. The penalty could be $1,500 to $7,500 per person, according to the filing from Evansville, Indiana-based Springleaf, which was called American General Finance when it was owned by AIG.
Fortress, the buyout and hedge-fund firm run by Dan Mudd, agreed to buy 80 percent of the lender last year for $125 million. New York-based AIG sold units as Chief Executive Officer Robert Benmosche, 67, worked to repay bailout funds and attract private investors to replace the U.S. Treasury Department’s majority stake.
Springleaf “is defending the case vigorously,” the lender said in the filing.
The court will issue a final order, which will include a ruling on the plaintiff’s request for penalties, interest and attorneys’ fees, according to the filing. The suit was filed in 1996, according to Springleaf, and AIG bought the firm in 2001…
Find out more at http://www.bloomberg.com/news/2011-08-12/fortress-s-ex-aig-unit-may-owe-up-to-69-million-after-losing-court-ruling.html
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