Judge OKs Class Action Against BofA Over Mortgage System

Law360, New York (July 11, 2012, 7:12 PM EDT) -- A putative class action accusing Bank of America Corp. of misleading investors about problems with its mortgage tracking can go forward, a federal judge ruled Wednesday.

The plaintiffs have made sufficient allegations that the bank knew about potential legal problems stemming from the way it kept track of mortgages, U.S. District Judge William H. Pauley ruled, denying Bank of America's motion to dismiss the complaint.

Institutional investors led by a Pennsylvania public school employee pension fund accuse the bank of securities fraud, saying it misled investors...
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