Appeals Court Considers Returning $8.5B Bond Settlement To State Court

Appeals Court Considers Returning $8.5B Bond Settlement To State Court A federal appeals court has agreed to an expedited review of a request by Bank of New York Mellon Corp. and BlackRock Inc. to return an $8.5 billion bond settlement with Bank of America Corp. from federal court back to state court.

According to a Bloomberg report, this request seeks to reverse an October decision by U.S. District Judge William Pauley that kept the accord in federal court for review. The proposed agreement was originally filed in New York State court and would settle claims brought by mortgage bond investors against Countrywide Financial Corp., which Bank of America acquired in 2008.

Walnut Place LLC, an investor group, successfully moved the case to federal court and is challenging the effort to return it to state court.

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