The bank, which purchased Bear in 2008, will pay $500 million to investors led by a group of pension funds, according to Reuters
The case is separate from JPMorgan's $13 billion settlement
with regulators in November 2013 over mortgage securities sales.
Investors said the offering documents from JPMorgan included false and misleading statements about the underwriting guidelines used by Bear's EMC Mortgage unit, Countrywide Home Loans and other lenders, and the accuracy of associated property appraisals, Reuters
They added that nearly all the certificates were cut to "junk" status, but roughly 92%, or $16.2 billion, were once rated "triple-A."
The plaintiffs plan to seek preliminary approval of the settlement by Feb. 2.
JPMorgan Chase & Co. has reached an agreement with Bear Stearns to settle a class action lawsuit regarding $17.6 billion in shoddy mortgage securities it sold during the financial crisis.