By Julie Steinberg
J.P. Morgan Chase & Co. has agreed to pay roughly $500
million to settle a class-action lawsuit over nearly $18 billion
worth of shoddy mortgage-backed securities sold by Bear Stearns
Cos., according to a court document and a person familiar with the
matter.
Lawyers for the plaintiffs, led by a group of pension funds,
filed a letter in U.S. District Court in Manhattan Thursday in
which they stated "the parties have reached an agreement in
principle" to resolve the lawsuit. J.P. Morgan purchased Bear
Stearns in 2008 during the financial crisis.
The lawyers in the letter asked the court to set a deadline of
Feb. 2 for both sides to submit details of the plan and ask for the
court's preliminary approval.
The proposed settlement doesn't resolve another class-action
lawsuit J.P. Morgan is currently facing over securities it itself
sold. The New York bank had previously settled other litigation
pertaining to mortgage products from Washington Mutual Inc., whose
assets J.P. Morgan purchased in 2008.
Write to Julie Steinberg at julie.steinberg@wsj.com
Access Investor Kit for JPMorgan Chase & Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005
Subscribe to WSJ: http://online.wsj.com?mod=djnwires