1st Alliance Stock Canceled

Irvine, Calif.-based First Alliance Corp., a bankrupt former subprime mortgage lender that is being liquidated, has announced the cancellation of all its outstanding shares of common stock.The company said a previously announced settlement involving allegations of deceptive lending practices made by federal and state agencies and private plaintiffs took effect Nov. 19, along with the company's liquidation plan. (First Alliance Mortgage Co. and its owners agreed in March to pay $60 million to settle the allegations.) Investors who held First Alliance shares on Nov. 19 will be paid $1.50 per share, or the shareholder's purchase basis of such shares prior to cancellation, whichever is less, provided that total payments do not exceed $3.25 million (in which case the payments will be reduced proportionately until the total does not exceed $3.25 million).