June 12, 2018 / 12:21 AM / 6 months ago

BNY Mellon, JPMorgan reach settlement in hospital bond lawsuit

Bank of New York Mellon and JPMorgan Trust Co have agreed to pay $13.5 million to settle a lawsuit accusing them of failing to correct legal documents for a $36 million Pennsylvania hospital bond, causing investors’ losses when the hospital went bankrupt.

The agreement resolves a long-running lawsuit alleging that the banks, as trustees for the bonds, failed to change Lower Bucks Hospital’s name on legal paperwork, hurting the bondholders’ claims during the hospital’s bankruptcy proceedings. The agreement, which was disclosed in a motion filed Friday in Philadelphia federal court, requires approval from U.S. District Judge Juan Sanchez, who is overseeing the case.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2sPP1yx

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