The lawsuit isn't new, BusinessInsider reminds us, it's been "working its way through the system" since soon after BofA's $50 billion acquisition of Merrill (recently, a judge allowed shareholders claims to proceed in August), however details about the case -- like that it seeks $50 billion -- and what it means for BofA are now more clear.
The shareholders claim that Bank of America "engaged in a deliberate effort to deceive the bank’s shareholders" about big losses looming at Merrill Lynch. The losses would hit BofA days after the acquisition. The shareholders (Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, the Teacher Retirement System of Texas, Stichting Pensioenfonds Zorg en Welzijn, represented by PGGM Vermogensbeheer B.V., and Fjärde AP-Fonden) claim BofA execs, particularly former CEO Ken Lewis and former CFO Tom Price, knew the losses were over $10 billion and concealed details from other execs.
Dealbook says Lewis and Price might end up paying to settle the case. As for BofA, Dealbook says "the settlement value appears to be in the billions."
The trial is set for October 12 2012.
Find out more at http://www.businessinsider.com/bank-of-america-50-billion-lawsuit-2011
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