Ocwen Financial Corp. has agreed to settle for $56 million a long-running class action securities fraud lawsuit.

The action stems from accusations that the Florida-based company misled investors by hiding servicing misconduct and potential conflicts of interest in 2013 and 2014, according to a filing with the Securities and Exchange Commission. The agreement needs court approval.

In a cash-and-stock agreement, Ocwen has agreed to pay the plaintiffs $49 million in cash and 2.5 million shares of common stock with a value of $7 million, according to the Form 8-K SEC filing.

Source: Mortgage Daily