Attorneys: Securities America to pay $150 million

AP News
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Posted: Apr 13, 2011 6:26 PM
Attorneys: Securities America to pay $150 million

Attorneys for investors allegedly fleeced by brokerage firm Securities America Inc. say the company has agreed to pay $150 million to settle a class-action lawsuit.

The attorneys, Joe Peiffer of New Orleans and Hugh Berkson of Cleveland, told The Associated Press Wednesday that the money would go to investors covered by the lawsuit as well as those who proposed arbitration as a means of recovering $400 million lost through investments that proved worthless.

The settlement was worked out a month after a federal judge in Dallas rejected a deal that would have allowed the La Vista, Neb.-based company to pay only $21 million.

A spokeswoman for Securities America would only say the company is making "very good progress" toward a settlement.