JPMorgan Chase & Co. (JPM)’s proposal to pay $280 million to investors who claimed they were misled in buying mortgage-backed securities won preliminary approval from a federal judge in Brooklyn, New York, according to court records.
U.S. District Judge Pamela K. Chen issued the order May 2 granting initial approval to the settlement with investors led by the Public Employees’ Retirement System of Mississippi. A hearing on final approval is scheduled for July 24.
The Mississippi pension plan sued in March 2008 on behalf of investors who bought $36.8 billion of mortgage-backed securities from May 2006 to September 2007, claiming the bank misrepresented the offerings for the investments. JPMorgan didn’t admit to any wrongdoing in agreeing to settle the lawsuit, according to the court filing.
Brian J. Marchiony, a spokesman for JPMorgan, declined to comment on the settlement.
The case is Plumbers & Pipefitters’ Local No. 562 Supplemental Plan & Trust v. JP Morgan Acceptance Corp. I, 2:08-cv-01713, U.S. District Court, Eastern District of New York (Brooklyn).
To contact the reporter on this story: Christie Smythe in Brooklyn at firstname.lastname@example.org