Compass Settles Le Nature’s Suit Against CIT, Krones

Law 360 reported that Compass Financial settled a $14 million financing fraud and breach of contract suit against CIT Group and Krones AG as part of a multidistrict litigation over the $668 million accounting scam that pushed bottling company Le-Nature’s into bankruptcy.

According to its latest 10-Q filing, CIT notes that in November 2012 the company entered into settlement agreements with the equipment manufacturer, Krones AG, the co-lessor plaintiffs and the liquidating trustee resolving the most significant claims asserted against the company in the multidistrict litigation. The settlements did not have a material adverse effect on its financial statements, CIT said.

By way of background, CIT was the lead lessor under a syndicated lease of bottling equipment to Le Nature’s and, in 2005, CIT and a group of co-lessors funded $144.8 million, of which approximately $45 million was funded by CIT.

To read the related Krones AG news release click here.

Previously on monitordaily: Krones to Pay $125MM for Role in Le-Nature’s Fraud, published November 9, 2012

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