Bank of America (BOA) announced today (Friday, September 28, 2012) that it has settled a class action lawsuit with investors who owned or bought BOA shares when the bank purchased Merrill Lynch in 2008 for $50 billion. The purchase of Merrill Lynch occurred within days of Merrill's collapse, effectively rescuing Merrill from bankruptcy.
BOA's $2.43 billion settlement agreement to pay the money to the class of investors will satisfy allegations, among other claims, that BOA and certain of its officers made false and/or misleading statements about the financial health of Bank of America and of Merrill Lynch.
As usual, the settlement must be approved by the U.S. District Court for the Southern District of New York to be implemented.
[NBC News, 9/28/2012, NBCNews.com/ "Bank of America settles Merrill lawsuit, will pay $2.43 billion"; channels.isp.netscape.com/9-28-2012/ "Bank of America to pay $2.43 B in settlement"; investing.business-week.com/ 9-28-2012/ "Bank of America to pay $243 B in settlement"; www.businessweek.com/9-28-2012/ "B of A to Pay $2.43 Billion to End Shareholder Suit Over Merrill"]
No comments:
Post a Comment