YieldStreet Settles Ship Scrap Investment Suit for $6.2 Million

Alternative investment firm YieldStreet Inc. has agreed to pay $6.2 million and waive potential fees to settle clients’ claims that it misrepresented protections for ship-scrapping loan investments later revealed as fraudulent, according to a court filing.

The settlement, reached after almost four years litigation, should be given preliminary approval, the investors told the US District Court for the Southern District of New York on Oct. 25.

The investors sued the firm on behalf of anyone who purchased certain debt instruments in one of YieldStreet’s defaulted funds since 2018. The complaint targeted investments in borrower payment dependent notes, defined as debt ...