MBIA Inc. settled a class-action lawsuit over investors' claims that it materially misstated financial results by engaging in improper accounting practices, both sides informed a federal court, Bloomberg News reported yesterday. The accord, for $3.75 million, will be distributed to investors who purchased or otherwise acquired MBIA common stock from Aug. 5, 2003, through March 30, 2005, the parties said in court papers. A federal appeals court in February 2011 reinstated the case after U.S. District Judge Louis Stanton dismissed it four years earlier, saying that the plaintiffs waited too long to file their case. Judge Stanton said that the statute of limitations had expired because the investors had notice of alleged wrongdoing in 2002. The appeals court said that the trial judge improperly calculated the statute of limitations.
