Goldman Sachs Group Inc has tentatively agreed to pay about $270 million to settle a lawsuit by investors, according to a source familiar with the matter.

Pension funds led by NECA-IBEW Health & Welfare Fund of Illinois accused the bank of misleading investors about the risks associated with mortgage securities offerings.

NECA-IBEW, an electrical workers’ pension fund, owned some mortgage-backed certificates underwritten by Goldman.

Goldman and its rivals have faced many lawsuits by investors seeking to recoup losses on mortgage securities.

The investors typically have claimed they were misled about the risks relating to the underlying home loans, most of which were made before or as the U.S. housing slump took hold in 2007.

A spokesman for Goldman Sachs declined to comment and attorneys for the fund did not immediately return calls for comment.

Also on Friday, Goldman Sachs was among a group of banks that received court approval for a $235 million settlement related to mortgage securities reached in February, according to a court filing.

Citigroup Inc, Goldman Sachs and UBS AG agreed to pay $235 million to settle U.S. litigation accusing them of concealing the risks of mortgage securities sold by the former Residential Capital LLC before the global financial crisis.

Led by the New Jersey Carpenters Health Fund, the investors accused the banks of misleading them in registration statements and prospectuses about the quality of mortgage loans backing the securities they helped underwrite in 2006 and 2007.

The bank is still awaiting potential settlements with government authorities.

On July 16, Goldman disclosed it set aside $1.45 billion for mortgage-related legal costs and regulatory matters.

Goldman is among banks targeted by a federal-state working group to go after misconduct in the pooling and sale of mortgage securities in the run-up to the financial crisis.

Goldman and Morgan Stanley are next in line for potential settlements, a person familiar with the matter said at the time.

Bloomberg first reported the news about the $270 million settlement on Friday.

The pension fund case is NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co., 08-cv-10783, U.S. District Court, Southern District of New York (Manhattan). (Additional reporting by Sudarshan Varadhan in Bengaluru; Editing by Leslie Adler)