Bank of America to pay $2.43b in settlement
Bank of America said it agreed to pay $2.43 billion to settle a class-action lawsuit related to its acquisition of Merrill Lynch at the height of the financial crisis. In the lawsuit, shareholders alleged the bank and some of its officers made false or misleading statements about both companies’ financial health. The suit was filed on behalf of investors who bought or held the bank’s stock when it announced its plans to buy Merrill in a $20 billion deal in 2008. The deal came into question later after the bank disclosed that Merrill would post $27.6 billion in losses that year. In announcing the settlement proposal, Bank of America denied the shareholders’ allegations and said that it agreed to the settlement to get rid of the uncertainties, burden, and costs related to the lawsuit.