CHEYENNE, Wyo., Aug. 1 -- The Wyoming Retirement System issued the following news:
The Wyoming State Treasurer's Office and the Wyoming Retirement System announced today a $340 million agreement in principle to settle class-action claims against six underwriters of IndyMac mortgage-backed securities (MBS). Together, the Wyoming plaintiffs represent a class of investors that will ultimately receive proportional distributions of the settlement amount.
By taking action in this case, Wyoming was able to broaden the case to cover a number of the offerings that had not been addressed in the initial complaint and expand the scope of investors covered in the class-action. The claims were initiated in 2009 in the U.S. District Court for the Southern District of New York, following the financial crisis of 2008. The late State Treasurer Joe Meyer, former Wyoming Retirement System Director Thom Williams, and former Attorney General Bruce Salzburg took this action in the interest of Wyoming citizens and Retirement System members. The national law firm of Berman DeValerio, which represents the Wyoming lead plaintiffs, is acting as lead counsel for the class.
"We believe this is a good settlement. It offers a meaningful recovery to investors, including the State of Wyoming, and is a testament to the pooled efforts of the State Treasurer's Office, the Wyoming Retirement System, the Attorney General's Office and our legal team," Wyoming State Treasurer Mark Gordon said.
The agreement in principle to settle the case was disclosed today by The Royal Bank of Scotland Group plc, the parent of defendant RBS Securities, Inc., in a filing with the Securities and Exchange Commission. The other underwriter defendants in the case are Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities, LLC (in its own right and as successor-in-interest to Bear Stearns & Co., Inc.), Morgan Stanley & Co., LLC, and UBS Securities LLC. The class-action settlement must be approved by U.S. District Judge Lewis A. Kaplan, who is overseeing the case. The parties to the agreement are working on settlement papers, which will commence the settlement approval process.
The case is In re IndyMac Mortgage-Backed Securities Litigation, Master Docket No. 09-Civ.-04583 (S.D.N.Y.).
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