US banking major Goldman Sachs is on the verge of settling another lawsuit over its dealings with mortgage-backed securities (MBS) in the run-up to the 2008 financial crisis.
In the latest development, the bank has agreed to pay around $270m (£173m, €246m) to settle a lawsuit brought by Pension funds led by NECA-IBEW Health & Welfare Fund of Illinois, who invested in residential MBS underwritten by it, according to media reports.
After the prices of the securities collapsed amid the 2008 financial crisis, the investors sued Goldman Sachs, alleging that the bank had misled them about the safety of the securities.
The agreement has not been signed yet and is expected to be disclosed as soon as 3 August, people familiar with the matter told Bloomberg.
Reuters separately reported the development.
Goldman Sachs and many of its rival banks have faced a number of lawsuits in connection with MBS, and they had to shell out billions of dollars in settlements and fines.
In a separate development on 31 July, Citigroup, Goldman Sachs and UBS received court approval for a $235m settlement of a lawsuit related to mortgage securities sold by the former Residential Capital before the global financial crisis.
In 2014, Goldman Sachs agreed to buy back almost $3.2bn in mortgage bonds from state-owned Fannie Mae and Freddie Mac to settle a suit by the Federal Housing Finance Agency.
The bank earlier set aside $1.45bn in the second quarter for mortgage-related litigation and regulatory matters. As a result, the bank's second-quarter net income plummeted 49% to $1.05bn.