New York State Common Retirement Fund, Albany, has announced a proposed $168 million settlement of its securities fraud class-action lawsuit against National City Corp. over investment losses at the bank, now owned by PNC Financial Services Group, confirmed Kate Gurnett, spokeswoman for state Comptroller Thomas DiNapoli.
The fund is the lead plaintiff in the class-action suit, according to a news release from Mr. DiNapoli, sole trustee of the $146.5 billion pension fund. Ms. Gurnett declined to comment.
The lawsuit, filed in June 2008 in U.S. District Court in Cleveland, alleged that National City “misrepresented the quality of its mortgages and home equity loans and the severity of its losses to investors,” the news release said. “The defendants made no admission of wrongdoing but agreed to the settlement, which is scheduled to go before (a federal district judge) for preliminary approval in the next few weeks, after which all class members will be notified.”
Fred Solomon, a spokesman for PNC, said the company had no comment.