U.S. court narrows mortgage lawsuit against Bank of NY Mellon

Dec 23 (Reuters) – A U.S. appeals court on Tuesday threw out most of the claims in an investor lawsuit against Bank of New York Mellon Corp as trustee for subpar mortgage-backed securities involved in an $8.5 billion settlement by Bank ofAmerica Corp.

The 2nd U.S. Circuit Court of Appeals in New York said Bank of New York Mellon did not have to face claims stemming from 25 of 26 trusts alleged to have contained risky mortgage loans from Countrywide Financial Corp, which was acquired by Bank of America in 2008.

The decision partially reversed a 2012 lower court ruling from U.S. District Judge William Pauley, who had thrown out a variety of other investor claims but had allowed claims related to the 26 trusts to proceed.

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