Make us your home page
Instagram

Judge approves $2.4B Bank of America shareholder settlement

NEW YORK — A New York judge on Friday approved Bank of America's $2.43 billion settlement of a class-action lawsuit brought by shareholders over the company's acquisition of former competitor Merrill Lynch.

Judge Kevin Castel of the U.S. District Court for the Southern District of Manhattan approved the settlement, which addresses allegations that Bank of America did not disclose the state of its finances or those of Merrill Lynch when it agreed to buy Merrill in September 2008.

Bank of America said in September that it rejected the allegations and was agreeing to the settlement to end the uncertainties, burden and costs associated with the lawsuit.

The Charlotte, N.C., company agreed to buy Merrill Lynch for $20 billion in stock at the height of the financial crisis. The deal was struck the same weekend that Lehman Brothers collapsed. Bank of America later disclosed that Merrill Lynch was going to take $27.6 billion in losses that year. Bank of America later asked for a $20 billion bailout from the federal government to help counteract those losses.

Bank of America still faces a civil fraud lawsuit that accuses the company and former CEO Kenneth Lewis of failing to disclose the Merrill losses and bonuses before the acquisition closed.

Judge approves $2.4B Bank of America shareholder settlement 04/05/13 [Last modified: Friday, April 5, 2013 9:04pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Tampa is 15th-most popular city to move to with U-Haul

    Markets

    TAMPA —Tampa is undoubtedly a destination point, at least according to U-Haul.

    Tampa is the No. 15 destination for people moving with U-Haul trucks. | Times file photo
  2. Florida's economy growing faster than other big states and far better than U.S. overall

    Business

    When it comes to economic growth, Florida's running alongside the leading states and well ahead of the United States as a whole.

  3. Westshore Marina District project takes shape with another acquisition

    Real Estate

    TAMPA — One of Tampa Bay's prime waterfront areas took another major step toward redevelopment Friday as WCI Communities bought 2.35 acres in Westshore Marina District.

    WCI Communities, Lennar's high-end subsidiary,has paid $2.5 million for 2.35 acres in the Westshore Marina District for 35 townhomes. WCI is under contract  to buy an additional 9.5 acres.
[BTI Partners]
  4. Posh Guy Harvey RV park to open in Tampa Bay with $250,000 cottages

    Business

    HOLIDAY — Love those Guy Harvey T-shirts with the soaring marlins? In the not too distant future, you might be able to kick back in your own Guy Harvey cottage in the first-ever Guy Harvey RV park.

    Renderings of the clubhouse and an RV cottage site of the planned Guy Harvey Outpost Club & Resort Tarpon Springs.
[Guy Harvey Outpost Collection]
  5. Port Tampa Bay secures $9 million grant to deepen Big Bend Channel

    Business

    Port Tampa Bay has secured a $9 million grant from the U.S. Army Corps of Engineers for the widening and deepening of the Big Bend Channel in southern Hillsborough County.