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REID COLLINS AND NEW MEXICO ATTORNEY GENERAL REACH $32.5 MILLION SETTLEMENT WITH FINANCIAL INSTITUTIONS OVER MORTGAGE-BACKED SECURITIES WHISTLEBLOWER CASE

New Mexico Attorney General Hector Balderas announced that a $32.5 million settlement was reached with seven financial institutions (entities of Barclays, Citigroup, Goldman Sachs, J.P. Morgan, Merrill Lynch, NatWest and Washington Mutual) resolving whistleblower allegations over mortgage-backed securities sold to the State. Reid Collins filed the lawsuit in 2014 representing its client, Integra REC, LLC, as a qui tam action under the New Mexico Fraud Against Taxpayers Act on behalf of the State of New Mexico. The action alleges that the financial institutions did not adequately disclose the characteristics of certain residential mortgage-backed securities purchased by New Mexico pension funds and a state-run investment council during 2003-2010. The Court confirmed dismissal of the action in light of the settlement on December 1, 2021, and the case is captioned State of New Mexico ex rel. Integra REC, LLC v. JPMorgan Securities LLC et al., Case No. D-101-CV-2014-00256.

 

View the Attorney General’s press release here.

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