Charlotte, NC,
Apr 24, 2012 (GlobeNewswire via COMTEX) -- On April 20, 2012, Plaintiffs Pamela
and Mark Lemmer filed a class action lawsuit against Bank of America, N.A. in
United States District Court in the Western District of North Carolina.
According to
the Complaint, Bank of America falsely represented to the Lemmers that flood
insurance was required for their cooperative unit by their mortgage and/or
federal law, even though their mortgage agreement does not contain a flood
insurance requirement and federal law does not require flood insurance for
cooperative units. The lawsuit alleges that Bank of America then force-placed
flood insurance coverage on the Lemmers' cooperative unit even though no flood
insurance was required in the first place, and accepted a commission for
purchasing this unnecessary insurance at the Lemmers' expense. "Not only
did Bank of America illegally buy the insurance, it took a commission for doing
so," said Plaintiffs' attorney Kai Richter.
In their class
action Complaint, the Lemmers seek relief on behalf of themselves and other
housing cooperative borrowers across the country who have been similarly
affected by Bank of America's alleged conduct. Based on this alleged conduct,
Plaintiffs' Complaint asserts claims against Bank of America for breach of
contract/breach of the covenant of good faith and fair dealing and fraud.
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