E*Trade Financial and its insurers have agreed in principle to pay $79 million to settle class action lawsuits brought against the online brokerage as a result of losses in its mortgage and home equity loans portfolio in 2007.  E*Trade's portion of the settlement payment is around $10.75 million and will be reflected as an expense in the current quarter.  E*Trade was sued by investors who alleged the company violated securities law and breached its fiduciary duty to shareholders in relation to the massive losses it suffered following the collapse of the subprime mortgage market. The company believes the claims are without merit and that the losses incurred were caused by a "worldwide economic catastrophe." The agreement in principle requires court approval to become final.  A definitive agreement is expected in the first quarter of 2012.  [Reuters 12/21/11]