Bank of America to pay $2.43 to settle lawsuit related to Merrill Lynch acquisition
September 28, 2012‐ Charlotte, North Carolina, U.S.
The Bank of America Corp. has announced that it will pay $2.43 billion to settle a 2009 class action lawsuit brought by investors who held shares at the time when Bank of America has announced plans to acquire Merrill Lynch. The bank would take $3.6 billion in the third quarter in charges related to legal expenses, adjustments and income tax expenses.
The class action suit was brought by investors who accused Bank of America of making false and misleading statements about the two companies. Bank of America is accused of hiding a major loss at Merrill Lynch and kept the shareholders in blind on the vote on the deal.
In a statement, Brian Moynihan, CEO of Bank of America said, "Resolving this litigation removes uncertainty and risk and is in the best interests of our shareholders. As we work to put these long-standing issues behind us, our primary focus is on the future and serving our customers and clients."
The shares of Bank of America fell 5 cents to $8.92 in premarket trading on Friday.
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