UPDATE 1-Bank of America wins reversal of $1.27 billion penalty in U.S. mortgage case
May 23, 2016 at 11:45 AM EDT
NEW YORK, May 23 (Reuters) - A U.S. appeals court on Monday threw out Bank of America Corp's $1.27 billion penalty in a fraud case over defective mortgages, dealing the U.S. Justice Department a major setback in a lawsuit related to the 2008 financial crisis.