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JPMorgan Said to Pay $500 Million to End Mortgage-Bond Suit

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JPMorgan Chase & Co. reached a preliminary settlement to pay $500 million to resolve a lawsuit over $17.6 billion of faulty mortgage-backed securities issued by Bear Stearns, according to a person familiar with the agreement who asked not to be named because the information isn’t public.

A group of pension funds which sued over the securities said in a court filing yesterday that the “settlement in principle” isn’t final and the parties plan to seek preliminary approval by Feb. 2.