Citigroup, Goldman, UBS Pay $235M To End MBS Class Action

Law360, Los Angeles (February 13, 2015, 7:35 PM EST) -- Citigroup Global Markets Inc., Goldman Sachs & Co. and UBS Securities LLC agreed Friday to pay $235 million to end a class action brought by a pension fund that bought mortgage-backed securities from the former Residential Capital LLC alleging the underwriters issued false prospectuses.

According to a motion for preliminary settlement approval filed by New Jersey Carpenters Health Fund in New York federal court on Friday, the underwriters settlement will bring to an end a yearslong suit over the sale of mortgage-backed securities to the fund and other investors in a number of offerings from 2006 to 2007 that were issued and...

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