Bank of America to pay $31 million to settle claims over unneeded flood insurance
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on September 18, 2014 at 5:52 PM, updated September 18, 2014 at 6:10 PM
Bank of America has agreed to pay $31 million to settle claims it forced mortgage borrowers to maintain excessive flood insurance coverage.
Judge Michael Simon of U.S. District Court in Oregon said he approved the settlement in an opinion filed Thursday. About 359,320 members of the national class action lawsuit will receive a portion of the $21.82 million set aside for them.
The attorneys that represented the class will receive $7,750,000 in legal fees, a quarter of the fund, plus $736,000 to cover their costs. The settlement administrator, Analytics LLC, will be awarded $630,000.
Larry and Ronda Arnett filed the class action lawsuit in Oregon in 2011, and it was joined by several other cases originally filed elsewhere. Each of those plaintiffs will receive $2,500 as an incentive award.
— Elliot Njus