Bank Of America Settles Lawsuit On Merrill Lynch Acquisition

Posted by Orb Staff on September 28, 2012 No Comments
Categories : Residential Mortgage

12483_bank_of_america Bank Of America Settles Lawsuit On Merrill Lynch Acquisition Bank of America has announced its intention to settle a class action lawsuit brought in 2009 on behalf of investors who purchased or held Bank of America securities at the time the company announced plans to acquire Merrill Lynch.

Under terms of the proposed settlement, Bank of America would pay a total of $2.43 billion and institute certain corporate governance policies. The plaintiffs had alleged, among other claims, that Bank of America and some of its officers made false or misleading statements about the financial health of Bank of America and Merrill Lynch. Bank of America denies the allegations and is entering into this settlement to eliminate the uncertainties, burden and expense of further protracted litigation.

‘Resolving this litigation removes uncertainty and risk and is in the best interests of our shareholders,’ says CEO Brian Moynihan. ‘As we work to put these long-standing issues behind us, our primary focus is on the future and serving our customers and clients.’

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