JPMorgan Chase & Co. agreed to pay $388 million to settle a suit by investors who claimed the bank misled them about the safety of $10 billion worth of residential mortgage-backed securities, a lawyer said.

The suit, brought by the Fort Worth Employees' Retirement Fund and other investors in nine offerings made before the financial crisis, claimed JPMorgan misled them about the underwriting, appraisals and credit quality of home loans underlying the securities. After the 2008 collapse of Lehman Brothers Holdings Inc., the certificates were worth 62 cents on the dollar at most, the investors said.

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