Direct Lending Fund Leaders’ $18 Million Settlement Approved

Direct Lending Investments LLC directors and officers got a federal court’s final approval Thursday for their $18 million settlement of fraud claims by the company’s court-appointed receiver, liquidators, and some allegedly defrauded investors.

The payment, to be made by five director and officer policy insurers, is a fair, adequate, and reasonable resolution, Judge Dale S. Fischer said for the US District Court for the Central District of California.

• The Securities and Exchange Commission sued the peer-to-peer lender in 2019, alleging it inflated annual returns by about 2% to 3% for years
• The insurers participating in the settlement are Endurance Risk ...