Bank to end lawsuit, pay $500 million.
JPMorgan Chase has agreed in principle to settle class action litigation arising from Bear Stearns’ sale of $17.58 billion of mortgage securities that proved defective during the recent U.S. housing and financial crises.
The largest U.S. bank, which bought Bear in 2008, will pay about $500 million to investors led by a group of pension funds, a person familiar with the matter said on Friday. The person requested anonymity because the terms have not been made public.
