Fight Over $8.5B BofA MBS Deal Pulled Into Federal Court

Law360, New York (August 26, 2011, 4:46 PM EDT) -- A growing dispute over the fairness of Bank of America Corp.'s $8.5 billion settlement with holders of Countrywide Financial Corp. mortgage-backed securities was removed to New York federal court Friday by Walnut Place LLC, which said it qualified as a mass action.

Walnut Place, among many other intervenors, have been pressing challenges to the settlement before New York County Judge Barbara Kapnick since mid-July, arguing settlement trustee Bank of New York Mellon Corp. and big investors pushing for the deal have conflicts of interest.

"This proceeding...
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