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) -- A U.S. appeals court ruled Monday that a proposed $8.5 billion settlement by

Bank of America

(BAC) - Get Bank of America Corp Report

related to mortgage-backed securities should be returned for review to the New York state court system, according to



The ruling reverses a decision made by a U.S. district court judge in October,

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said. Bank of America is looking to settle "claims by investors in 530 mortgage securitization trusts with $174 billion of unpaid principal," the report said.

Bank of America shares closed Monday at $8.04, up 2%. The stock is up more than 40% so far in 2012.


Written by Michael Baron in New York.

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Michael Baron


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