The Schwab S&P 500 Index investment fund filed a multibillion-dollar lawsuit against Bank of America (BAC: 6.645 +4.32%) and its former CEO Ken Lewis this week, claiming the bank's former leadership hid losses at Merrill Lynch from shareholders and made material misrepresentations about Merrill before acquiring the investment bank three years ago.
In their capacity as shareholders, the Schwab S&P 500 plaintiffs, and several other similar Schwab funds, claim the bank's leadership failed "to communicate with BofA shareholders" about details of Merrill's financial situation and the government bailout funds that made the merger possible.
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