” JPMorgan Chase & Co (JPM.N) has won preliminary approval from a U.S. judge for its agreement to pay $280 million to resolve claims that it misled investors in billions of dollars worth of mortgage-backed securities.
“U.S. District Judge Pamela Chen, in Brooklyn, New York, issued the preliminary approval on Friday. The settlement, which is subject to final court approval, would resolve a class action lawsuit filed in 2008.
“The accord marks the third-largest settlement in a U.S. class action against banks that packaged and sold mortgage securities at the center of the 2008 financial crisis.
“The class action was led by the Public Employees’ Retirement System of Mississippi, which had sued over what it said were untrue statements and omissions in connection with $36.8 billion in mortgage securities issued in 2006 and 2007.
“The lawsuit accused JPMorgan of ignoring its standards and guidelines when evaluating and buying loans included in 33 offerings of mortgage securities.”
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