Judge Juan R. Sánchez of the U.S. District Court for the Eastern District of Pennsylvania granted final approval to the deal Dec. 21.
The parties reached a deal on the last day of trial. The funds will be distributed among the more than 500 class members.
Leonard Becker sued BNY Mellon and JP Morgan on behalf of a class of holders of revenue bonds issued for the benefit of Lower Bucks Hospital in Bristol, Pa.
He sought to recover damages for financial losses the bondholders sustained because the banks allegedly failed to maintain a perfected security interest in the collateral securing the bonds. He also wanted BNY Mellon to distribute funds awarded to the bondholders in the hospital’s bankruptcy plan.
The district court certified the suit as a class in 2016, but the parties weren’t able to reach a settlement until after the trial was underway.
The court also approved a $2.15 million attorneys’ fee award and $270,000 in litigation expenses for class counsel.
Barrack, Rodos & Bacine and Fellheimer and Eichen represented the class.
Morgan Lewis & Bockius LLP and Bryan Cave LLP represented BNY Mellon and JP Morgan.
The case is Becker v. Bank of N.Y. Mellon Tr. Co., 2018 BL 474912, E.D. Pa., No. 11-6460, 12/21/18.