People Of WFIT
Fri September 28, 2012
Bank Of America To Pay $2.43 Billion To Settle Class Action Lawsuit
While denying it did anything wrong, Bank of America announced this morning it will pay "$2.43 billion and institute certain corporate governance policies ... 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."
Reuters reminds us that "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."
In 2009, Ohio Public Radio's Jo Ingles reported on the suit for All Things Considered. Back then, Ohio State University law professor Paul Rose predicted that BofA would eventually settle. "You'll see a settlement often coupled with some sort of corporate governance change or something that they feel is really important," he said.
In its most recent earnings report, BofA said it had net income of $2.5 billion in second-quarter 2012. But a year ago, as NPR's Chris Arnold reported, it was struggling to restore investors "lost faith": "How Bank Of America Lost Its Balance."