Wednesday, December 10, 2008

Kansas City: NovaStar agrees to settle securities-fraud class action for $7.25M

From Kansas City Business Journal:

NovaStar Financial Inc. has agreed to pay $7.25 million to settle a class-action securities-fraud lawsuit that originated in April 2004.

Novastar's insurance has agreed to pay the settlement; however, is it really the insurance company's responsibility to do so? Even though they don't have an admission of wrong doing, that doesn't mean that wrong doing didn't take place. I think a bigger investigation is in order for the company--and the people who work and do business with Novastar deserve answers.

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