Impac To Pay $3.1M To Settle Citigroup Suit Over MBS Trust

Law360, Los Angeles (January 4, 2013, 6:00 PM EST) -- Citigroup Global Markets Inc. has agreed to a $3.1 million settlement of a securities lawsuit alleging Impac Funding Corp. tricked investors into sinking more than $7 million into a mortgage-backed securities trust, according to papers filed Thursday in California federal court.

The settlement requires California-based Impac to pay Citigroup in stock and/or cash to resolve all claims arising out of the purchase of certificates in the trust on March 12, 2010. Citigroup alleged Impac knew at the time of the purchase that the pooling and service...
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