Los Angeles, CA: A $340 million settlement has been proposed potential ending the class-action claims against six underwriters of IndyMac mortgage-backed securities.
The application to provide notice of the proposed settlement to class members, filed late Thursday in a New York federal court, would result in the one of the largest federal class-action recoveries for investors in mortgage-backed securities, or MBS. Berman DeValerio represents the lead plaintiffs in the matter, the Wyoming State Treasurer' Office and the Wyoming Retirement System.
If approved by the Court, the settlement would resolve claims that the offering materials for 50 MBS offerings issued by now-defunct IndyMac Bank contained untrue statements because they mischaracterized the underwriting practices used to originate and acquire the underlying loans.
