Photo: Luke Sharrett/Bloomberg

It's been more than a decade since the 2008 financial crisis and housing market crash, yet one piece of resulting litigation over mortgage-backed securities only recently concluded with a $150 million settlement.

The Federal Deposit Insurance Corp., which was acting as a receiver for the defunct Guaranty Bank and Deutsche Bank Securities Inc., entered into the settlement to resolve a claim under the Texas Securities Act. The FDIC alleged the banks made untrue, misleading statements about the quality of the mortgage loans in order to sell billions worth of residential mortgage-backed securities to Guaranty Bank, which failed in 2009.

Houston litigation boutique Yetter Coleman announced Monday the settlement between the parties came on the night before jury selection was set to begin in late October in the U.S. District Court for the Western District of Texas. The court on Nov. 21 dismissed the case.

"It is among the best pro rata recoveries by the FDIC among its successful pursuit of various mortgage-backed securities cases around the country," Yetter Coleman said in a statement.

The litigation has been pending since 2012. The amended petition in FDIC v. Deutsche Bank Securities alleged that Guaranty Bank paid nearly $2 billion for certificates of residential mortgage-backed securities, which were issued, underwritten or sold by the defendants. The plaintiff claimed the defendants made untrue, misleading statements about the mortgage loans backing the securities Guaranty Bank had purchased.

In addition to Deutsche Bank, the other defendants were GMAC RFC Securities, Goldman, Sachs & Co., J.P. Morgan Securities, The Bear Stearns Companies Inc., and Structured Asset Mortgage Investments II Inc.

Because of earlier settlements, Deutsche Bank was the sole remaining defendant. Its settlement ends the litigation.

Earlier in the case, the parties tussled over how to calculate the damages. In September 2017, Deutsche Bank scored a victory when U.S. District Judge Sam Sparks granted partial summary judgment that sided with how the bank argued that damages should be calculated.

Yetter Coleman partner Bryce Callahan, who represented the FDIC, wrote in an email that the settlement is a well-deserved recovery for his client.

"Going into trial, our client's claimed damages were just over $200 million," Callahan said. "This was a hard fought case, with great trial lawyers on both sides. Big settlements take time."

Deutsche Bank's attorney, Andrew Frankel, a partner in Simpson Thacher & Bartlett in New York, declined to comment.