Bank of America Corp has agreed to pay $150 million to settle a class-action lawsuit accusing the former Merrill Lynch & Co of misleading investors in connection with the sale of bonds and preferred stock. U.S. District Judge Jed Rakoff has granted preliminary approval to the settlement. A hearing will be held on November 23rd to decide if final approval should be ordered by the court. The Plaintiffs accused Merrill of issuing false and misleading prospectuses and registration statements in connection with the offerings, which were made between 2006 and 2008. The case was filed in the U.S. District Court, Southern District of New York (Manhattan).
Two Louisiana pension funds, the Louisiana Sheriffs’ Pension and Relief Fund and the Louisiana Municipal Police Employees’ Retirement System, were the lead Plaintiffs in the case. About 20 former Merrill executives and directors were named as Defendants, including former chief executives Stanley O’Neal and John Thain. As you may recall, Bank of America acquired Merrill Lynch & Co in January, creating the largest U.S. bank by assets.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.