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(Reuters)—Bank of America Corp.'s proposed $8.5 billion settlement with investors in mortgage-backed securities should be returned to New York state court for review, a U.S. appeals court ruled Monday.
The decision by the 2nd U.S. Circuit Court of Appeals is a win for Bank of America, which is seeking approval to settle claims by investors in 530 mortgage securitization trusts with $174 billion of unpaid principal.
The ruling reverses an October decision by U.S. District Court Judge William Pauley taking the case from state court.