Merrill To Settle MBS Action For $315M

Law360, New York (November 18, 2011, 5:27 PM EST) -- Merrill Lynch & Co. Inc. will pay $315 million to settle a class action alleging it sold institutional investors mortgage pass-through certificates without disclosing the risks inherent to the securities, two sources close to the litigation said Friday.

Settlement papers have yet to be filed in the New York case, but U.S. District Judge Jed S. Rakoff on Oct. 28 ordered the parties in the litigation to finalize the documents by Dec. 5. The parties informed Judge Rakoff of the settlement on Oct. 21.

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