A U.S. federal judge tossed out a lawsuit brought by non-profit group Better Markets that sought to block a $13 billion settlement JPMorgan Chase & Co reached with the U.S. Justice Department over shoddy mortgage loans sold to investors before the financial crisis.
Better Markets sued the Justice Department last February, contending that the then-record settlement reached in November 2013 was “unlawful” and gave JPMorgan Chase & Co “blanket civil immunity” for its conduct without sufficient judicial review.
Better Markets was seeking to have the court prevent the Justice Department from enforcing the settlement until a judge reviewed it.
Better Markets Chief Executive Officer Dennis Kelleher said in a statement that the law allowing settlements remained deficient, not the advocacy group’s lawsuit.
“Such backroom deals should not be allowed in a democracy worthy of its name. We will be carefully evaluating the court’s opinion before determining our next steps,” Kelleher said.
Read the full Reuters article by Lindsay Dunsmuir here.