COLUMBUS — A ruling by a federal judge allows Ohio public pension systems to move forward on a securities fraud lawsuit against Bank of America and Merrill Lynch, Attorney General Richard Cordray announced Monday, Aug. 30.
If the pension funds win, the lawsuit could mean recovering billions of dollars for shareholders.
The lawsuit alleges that Bank of America, Merrill Lynch and their top officers committed securities fraud when they failed to tell shareholders about massive losses and $5.8 billion in accelerated bonus payments before the two financial giants merged.
“The court’s ruling is a major win not only for Ohio teachers, public employees and all Bank of America shareholders, but it also is a win for shareholders of every company and for our financial system,” Cordray said. “The court ruled that companies cannot pick and choose what they will tell their shareholders.
Companies will not be allowed to hide exorbitant bonuses and huge losses from their shareholders. We will continue to move forward aggressively with this action to hold these companies and executives accountable.”
Read on.
No comments:
Post a Comment