JPMorgan Hit With Class Action Over Mortgage-Backed Securities

JPMorgan Chase & Co will face a class action lawsuit from investors who claim they were misled by the bank about the safety of $10 billion in mortgage-backed securities it sold before the financial collapse. A federal judge approved class action for the investors regarding liability, but not for damages, though he left the door open for investors to try again. The lawsuit claims JPMorgan misled investorsabout the underwriting, appraisals and credit quality of the loans underlying the certificates.