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Nevada attorney general makes settlement in 'robosigning' scheme

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Updated: 2/16 11:03 am
LAS VEGAS (AP) -- Nevada took a settlement Friday and dropped a consumer-fraud lawsuit against a mortgage services firm that state Attorney General Catherine Cortez Masto had accused of orchestrating a massive illegal "robosigning" scheme.

The deal, announced by Masto, called for her office to receive almost $5.6 million from the former Lender Processing Services, plus another $500,000 in attorney fees and costs. It contained no admission of wrongdoing.

"The settlement and mutual release resolves the state's civil action alleging LPS violated the Nevada Deceptive Trade Practices Act, and all other outstanding issues or claims related to the litigation," Masto said in a statement.

Masto spokeswoman Beatriz Aguirre said the deal resolved every element of the case - and took the state off the hook after a judge two weeks ago ordered Masto's office to pay sanctions that could have amounted to hundreds of thousands of dollars in legal fees to the company.

The lead lawyer for the firm, Mitchell Berger, didn't immediately respond Friday to after-hours messages seeking comment. He had been critical of Nevada for being the only state not to accept a nationwide settlement offer from the company.

The attorney general noted in her statement that Nevada became the 50th state to settle with the Jacksonville, Fla.-based company, now known as Black Knight Financial Services, a subsidiary of Fidelity National Financial.

Masto, a Democrat, had vowed to hold companies responsible after Nevada was hit hard by foreclosures once the Great Recession began in December 2007.
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