E-Trade To Settle Securities Class Actions For $79M

Law360, New York (December 21, 2011, 8:16 PM EST) -- E-Trade Financial Corp. and its insurers will pay $79 million to settle securities class actions brought by investors who said the company misrepresented its financial condition during the mortgage meltdown in 2007, according to a report filed Wednesday with the U.S. Securities and Exchange Commission.

E-Trade will contribute approximately $10.75 million to end class actions and several consolidated suits launched against the online brokerage and its executives in October 2007, after E-Trade experienced losses in its portfolio of mortgages and home equity loans.

In the SEC...
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