NEW YORK – JPMorgan Chase reached a preliminary settlement to pay $500 million to resolve a lawsuit over $17.6 billion of faulty mortgage-backed securities issued by Bear Stearns, according to a person familiar with the agreement who asked not to be named because the information isn’t public.
A group of pension funds which sued over the securities said in a court filing Thursday the “settlement in principle” isn’t final, and the parties plan to seek preliminary approval by Feb. 2.
The pension funds sued in September 2008 in Manhattan federal court over the securities, which Bear Stearns issued in 2006 and 2007.
