Receivables' manager Credit Corp announced yesterday that it had agreed to settle a class action brought by fund manager Clime Capital Group and other parties.The settlement agreement provides for the payment of A$6.5 million to the claimants. Credit Corp said most of the claim would be met by its insurer. It said the payment would not have a material impact on earnings or cash flow in the current financial year.Clime launched its case against Credit Corp in 2008, with the backing of litigation funder IMF Australia. The cause of the action was alleged misleading and deceptive conduct, and failure to disclose material information concerning Credit Corp's profitability in the period between November 2007 and February 2008. The matter went to mediation in June this year and, following a directions hearing in August, proceedings were due to commence in the Federal Court on December 23.On November 7, 2007, Credit Corp lodged an announcement with the Australian Securities Exchange, which, among other things, revised its 2008 profit guidance down $24 million to $17 to $19 million.On February 11, 2008, Credit Corp lodged a second ASX announcement that further revised profit guidance from $17 to $19 million down to $10 to $12 million.Clime alleged that: "By November 7, 2007, and at all times during the period from 8 November to 11 February 2008 there was or had been a progressive and material deterioration in Credit Corp's profitability due to various adverse factors."As at 7 November 2007 and at all times during the relevant period there was not a reasonable basis for the 7 November profit forecast. Credit Corp was not likely to achieve the 7 November profit forecast."Credit Corp had not disclosed and did not propose to disclose promptly to the public all material matters regarding its profitability, which members of the public should take into account in deciding to acquire an interest in Credit Corp shares."