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Subprime Lenders Face $48 Million in Possible Damages

Posted May 8, 2007 10:13 AM CDT
By Debra Cassens Weiss

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A jury verdict against three subprime lenders accused of bait-and-switch advertising could be tripled to nearly $48 million.

A competitor sued NovaStar Financial Inc. of Kansas City, Mo., and two smaller lenders, contending their ads on bankrate.com were misleading. An Orange County, Calif., jury on Friday awarded $15.9 million in damages, according to the Wall Street Journal (sub. req.).

A lawyer for the plaintiff, American Interbanc Mortgage LLC, told the newspaper that the judgment could be tripled because of antitrust violations.

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