Bank of America has agreed to pay $31 million to settle a class action lawsuit that claims mortgage borrowers were forced to maintain excessive flood insurance coverage.
U.S. District Court Judge Michael Simon approved the settlement in an opinion filed in late September. 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 representing the borrowers will get $7.7 million in legal fees, about a quarter of the settlement. 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.
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