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BofA $8.5 billion settlement moves to federal court

Last Updated: Saturday, August 27, 2011 - 12:16

New York: Investors who objected to Bank of America Corp's proposed USD 8.5 billion settlement of claims related to losses on mortgage-backed securities have moved the case to federal court from a New York state court.

In a filing on Friday, investors led by 11 entities sharing the name Walnut Place said the size of the case qualifies as a "mass action" giving federal courts jurisdiction.

Bank of New York Mellon Corp, as trustee under 530 mortgage securitization trusts, had negotiated the accord with 22 institutional investors.

Bureau Report

First Published: Saturday, August 27, 2011 - 12:16
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