Investors looking to block the $8.5 billion settlement of claims related to losses on Bank of America MBS have moved the case to federal court, a Reuters report indicated.
The BofA settlement calls for the bank to pay the amount to resolve claims from investors in Countrywide Financial Corp. MBS. BofA purchased Countrywide in 2008.
The bond investors include the Walnut Place group of 11 buysiders, several federal home loan banks, pension funds, and insurers. They originally filed a petition to intervene in the New York state court, the report said.
But in a filing today, the investors said that the size of the case qualified it for a mass action and thus gave federal courts jurisdiction to take over the claim, according to the Reuters report.