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A New York law firm that specialized in foreclosures says it's reached a settlement with the state over its practices.

The Steven J. Baum Firm in suburban Buffalo said Thursday that it agreed to pay $4 million but admits no wrongdoing.

The firm had been harshly criticized after The New York Times published pictures from its 2010 Halloween party, which showed people dressed to look homeless.

Attorney General Eric Schneiderman says the firm brought foreclosure proceedings without always verifying that they were warranted. It was one of the state's largest-volume mortgage foreclosure firms when it announced in November that it would close.

Baum attorney Elkan Abramowitz says the firm is relieved by the settlement but disputes some of state's findings.

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