After nearly four years of hotly contested litigation, a New York state intermediate appellate court on Thursday approved an $8.5 billion settlement between Bank of America Corp. and investors in residential mortgage-backed securities. The court approved the settlement as it was originally proposed, endorsing parts of the deal that had been rejected by a lower court judge. It’s not immediately clear if objectors to the deal will appeal to New York’s highest court.
The decision marks a win for Kathy Patrick of the small Texas firm Gibbs & Bruns, which represented 22 institutional investors, including Blackrock Inc. and MetLife Inc., that backed the deal. Gibbs & Bruns stands to earn $85 million, according to the terms of the original deal. It’s also a victory for Bank of New York Mellon and its lawyers at Mayer Brown and Dechert. BNY Mellon served as trustee for investors in the RMBS and threw its support behind the agreement.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
