JPMorgan Chase (JPM) must face a class action lawsuit by investors who claimed the bank misled them about the safety of $10 billion of mortgage-backed securities it sold before the financial crisis. Per Reuters:
U.S. District Judge Paul Oetken in Manhattan certified a class action as to JPMorgan's liability but not as to damages, saying it was unclear how investors could value the certificates they bought, given how the market was "not particularly liquid." He said the plaintiffs could try again to certify a class on damages.
Oetken named the Laborers Pension Trust Fund for Northern California and Construction Laborers Pension Trust for Southern California as lead plaintiffs, and their law firm Robbins Geller Rudman & Dowd as lead counsel.Sponsor Content
Back in November 2013, JPMorgan signed an agreement with government agencies to end all existing legacy mortgage-backed securities issues for $13 billion, ranking as the second biggest bank settlement in history.