Thursday, March 26, 2009

Lawsuits: CEO Lewis, B of A, misled shareholders on Merrill Lynch deal

The Wall Street Journal reports (sub. req.):

Five public pension funds are seeking lead status in a class-action suit against Bank of America Corp., alleging that the nation's largest bank by assets made "untrue statements" in the run-up to its purchase of Merrill Lynch & Co. and did not disclose material information to shareholders.

The funds claim to have lost $274 million on their Bank of America investments between July 21, 2008 and Jan. 20, 2009.

Ohio Attorney General Richard Cordray said:

We believe that Bank of America executives had material information that raised serious reservations about the deal but they did not disclose this information to shareholders.

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