Bank of America Corp. (NYSE: BAC) received one more hit in a long line of bad publicity. Its reputation was damaged once again. Again, its image as the worst of America’s large banks was bolstered. And, its balance sheet took yet another blow.
In a terse statement put out yesterday:
Bank of America today announced it, and certain of its current and former officers and directors, have agreed, subject to court approval, to settle a class action lawsuit brought in 2009 on behalf of investors who purchased or held Bank of America securities at the time the company announced plans to acquire Merrill Lynch.
Under terms of the proposed settlement, Bank of America would pay a total of $2.43 billion and institute certain corporate governance policies. Plaintiffs had alleged, among other claims, that Bank of America and certain of its officers made false or misleading statements about the financial health of Bank of America and Merrill Lynch. Bank of America denies the allegations and is entering into this settlement to eliminate the uncertainties, burden and expense of further protracted litigation.
Douglas A. McIntyre