Granite Partners, L.P., Granite Corporation, and Quartz Hedge Fund, three funds that invested in mortgage-backed securities, have settled their claims against Donaldson, Lufkin & Jenrette Securities Corporation for $30.4 million. The claims arose out of margin calls made on the Funds by DLJ and other broker-dealers, and the Funds' subsequent liquidation and bankruptcy. Including a $39.6 million settlement reached with Bear, Stearns & Co. Inc. in November 1999 and certain other settlements, total litigation recoveries by the Funds now exceed $70 million.

The DLJ settlement was approved on June 11, 2001 by Judge Robert W. Sweet of the United States District Court for the Southern District of New York. The settlement followed the court's ruling earlier in 2001 denying the defendants' motions for summary judgment.

The Funds are represented by Friedman Kaplan partners Eric Seiler, Robert J. Lack, and Katherine L. Pringle and associate Lee D. Sossen, together with partners Steven E. Greenbaum and Scott M. Berman and associates Anne M. Cunningham and Melissa A. Sarubbi of Berlack, Israels & Liberman LLP.