Bear Stearns Settles CMO Suit For $27M

Law360, New York (November 13, 2008, 12:00 AM EST) -- Bear Stearns Cos. Inc., now part of JPMorgan Chase & Co., has agreed to pay $27 million to settle a lawsuit on behalf of now-defunct National Heritage Life Insurance Co. over fraud related to collateralized mortgage obligations.

Bear Stearns and a receiver managing the assets of Orlando, Fla.-based National Heritage reached the settlement on Oct. 14, an attorney for National Heritage said Wednesday.

The settlement followed a decision by an Orange County, Fla., state court in April that Bear Stearns breached its duty to National Heritage...
To view the full article, register now.