Lehman, Mortgage Co. Reach Deal In Loan Sale Suit

Law360, Wilmington (September 28, 2011, 6:16 PM EDT) -- In response to a confidential settlement, a New Jersey federal judge on Wednesday dismissed Lehman Brothers Holdings Inc.’s lawsuit alleging American Federal Mortgage Corp. breached a contract by misrepresenting the quality of the loans it sold to the bankrupt investment bank.

U.S. District Judge Faith S. Hochberg issued an order dismissing the case, giving the parties 60 days to return to court if the settlement is not consummated.

If the settlement cannot be finalized, the judge said the court will not address the merits of the...
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