common stock

National City Corp. To Pay $168 Million To NY Pension Fund To Settle Claims of Mortgage Loan Fraud

National City Corp., a financial holding company based in Cleveland, agreed to settle a class action brought by the New York State Common Retirement Fund and other purchasers of National City common stock for allegedly misrepresenting the quality of mortgage loans backing its RMBS. The suit, filed in 2008, alleged that National City mischaracterized as prime approximately $10 billion in subprime loans, and misrepresented the loans’ quality and performance. Plaintiff alleged violations of Sections 10(b) and 20(a) of the ’34 Act and Sections 11 and 15 of the ’33 Act. National City will pay $168 million to the class. The settlement, announced on August 8, 2011, must still be approved by U.S. District Judge Solomon Oliver of the Northern District of Ohio. Press Release.