E*TRADE Announces $79 Million Settlement Of Subprime Claims In Securities Lawsuit

E*TRADE Announces $79 Million Settlement Of Subprime Claims In Securities Lawsuit

NEW YORK - (Mealey's) E*TRADE Financial Corp. has agreed to a $79 million settlement with investors to settle claims that it misrepresented the risk associated with its investment in subprime mortgage-backed securities in violation of federal securities laws, according to a Securities and Exchange Commission Form 8-K filed by E*TRADE Dec. 22 (Larry Freudenberg v. E*TRADE Financial Corporation, et al., No. 07 Civ. 8538, S.D. N.Y.).