NEW YORK—E*Trade Financial Corp. has become the latest to settle a lawsuit filed against it over losses in its mortgage and home equity loan portfolios.
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The company and its insurers have agreed to pay $79 million to settle a class-action suit, $10.8 million of which will come from E*Trade itself. The litigation was filed in 2007 and alleged the company had breached its fiduciary duties to shareholders by hiding potential losses from subprime mortgages.
The settlement comes in the same week Bank of America agreed to pay $315 million to settle similar claims made against its Merrill Lynch subsidiary.
