(December 11, 2012) — Dutch pension ABP believes it will settle lawsuits over allegedly miss-sold securities with two more firms in the first quarter of next year, following an agreement with JP Morgan on the matter.
The €274 billion public sector fund sued the investment bank in 2011, claiming to have made “purchases of certain residential mortgage-backed securities (RMBS)… in reliance on the false and misleading statements that were made by defendants”.
It announced an unspecified deal with JP Morgan today, after reaching “an agreement in principle to settle all claims pending in this matter”, according to a letter of 13 November, seen by aiCIO.
Meanwhile, the pension fund has seven other legal actions on-going, also relating to the sale of RMBS, dating back to 2010, including one filed against Morgan Stanley just 13 days ago.
Other defendants include Goldman Sachs, Credit Suisse and Deutsche Bank. aiCIO understands an unspecified pair of accused parties have agreed to settling out of court and are negotiating towards a sum.
An ABP spokesman would not disclose the value of the settlement with JP Morgan, saying: “We are in every case willing to proceed until the end. If we are proposed a settlement along these lines it is wise to take it and not proceed because it is not a rule that the longer you litigate the higher the pay cheque will be.”
JP Morgan, Credit Suisse, and Goldman Sachs declined to comment. No one was available at Morgan Stanley, and Deutsche Bank had not responded to requests.