JP Morgan Chase and Co. has agreed to pay $500 million to settle a class-action brought by pension funds over $18 billion in mortgage-backed securities sold by Bear Stearns, according to the Wall Street Journal. 

JP Morgan purchased Bear Stearns in March of 2008, as mounting investor losses in mortgage-backed securities forced the firm's collapse. 

Last week, plaintiffs filed a letter in U.S. District Court in Manhattan informing the court of the agreement and asking for a deadline of Feb. 2 for both sides to lay out details for a preliminary approval of the settlement. 

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