Bankruptcy Judge OKs Luminent, HSBC Settlement

Law360, New York (September 4, 2009, 4:03 PM EDT) -- A bankruptcy judge has approved a compromise and settlement agreement between Luminent Mortgage Capital Inc. and HSBC Securities USA Inc. to close a district court case brought by Luminent in 2007 accusing HSBC of undervaluing $24 million in subprime mortgage-backed bonds.

Judge Duncan W. Keir's decision Thursday in the U.S. Bankruptcy Court for the District of Maryland settled all claims and counterclaims in the securities and breach of contract dispute filed by now-bankrupt Luminent, Minerva Mortgage Finance Corp. and Mercury Mortgage Finance Statutory Trust in the...
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