Will Crisis-Era Litigation Ever End For Banks? - Dealbreaker

Will Crisis-Era Litigation Ever End For Banks?


Not any time soon, no.

A federal judge on Tuesday said JPMorgan Chase & Co must face a class action lawsuit by investors who claimed the largest U.S. bank misled them about the safety of $10 billion of mortgage-backed securities it sold before the financial crisis….

Oetken rejected JPMorgan's arguments that the case could not be a class action because it was based on the practices of many originators and more than 8,000 underwriting guidelines, some investors were more sophisticated than others, and the MBS had evolved too rapidly during the two-year class period.

JPMorgan to face U.S. class action in $10 billion MBS case [Reuters]