{"id":5828,"date":"2015-07-17T00:00:00","date_gmt":"2015-07-17T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/07\/jpmorgan_settles_class_action"},"modified":"2022-05-06T15:59:15","modified_gmt":"2022-05-06T20:59:15","slug":"jpmorgan-settles-class-action","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/jpmorgan-settles-class-action\/","title":{"rendered":"JPMorgan Settles Class Action Mortgage-Backed Securities Case for $388M"},"content":{"rendered":"

JPMorgan Chase & Co. (JPM) <\/a>has consented to pay $388 million to resolve a securities lawsuit filed by investors claiming that the bank misled them about the safety of $10 billion of mortgage-backed securities (MBSs<\/a>). Included among the plaintiffs in the case are the Laborers Pension Trust Fund for Northern California, the Fort Worth Employees\u2019 Retirement Fund, and the Construction Laborers Pension Trust for Southern California.<\/p>\n

The funds, and other investors in nine offerings that were made prior to the financial crisis, contend that JPMorgan misled them about the appraisals, underwriting, and credit quality of home loans that were underlying the securities. Following the collapse of Lehman Brothers Holdings Inc. in 2008, the certificates\u2019 value dropped to 62 cents on the dollar.<\/p>\n

JPMorgan is settling the case but has denied any wrongdoing. It will be up to a judge to decide on whether to approve the deal.<\/p>\n

According to a copy of the securities action filed in 2010, the lawsuit is for entities and persons that acquired the bank\u2019s Mortgage Pass-Through Certificates. The certificates involved were allegedly sold pursuant to or traceable to a misleading Registration Statement from 2007, as well as misleading and false Prospectus Supplements that also were issued that year. According to the Complaint, examples of purportedly false and misleading statements found in offering documents included claims that the loans had received investment grade credit rating, and loans backing the Certificates had specific loan to value ratios.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase & Co. (JPM) has consented to pay $388 million to resolve a securities lawsuit filed by investors claiming that the bank misled them about the safety of $10 billion of mortgage-backed securities (MBSs). Included among the plaintiffs in the case are the Laborers Pension Trust Fund for Northern California, the Fort Worth Employees\u2019 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3958,3757],"tags":[],"class_list":["post-5828","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-jp-morgan-chase","category-mortgagebacked-securities"],"yoast_head":"\nJPMorgan Settles Class Action Mortgage-Backed Securities Case for $388M — Investor Lawyers Blog — July 17, 2015<\/title>\n<meta name=\"description\" content=\"JPMorgan Chase & Co. 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