Bank Of America Loses Merrill Lynch Acquisition Related Lawsuit
August 28th, 2010 - 7:38 pm ICT by GDBy Ranjan Bhaduri
Manhattan, Aug 28, (THAINDIAN NEWS) In a recent development that has come to the largest bank of USA, Bank Of America as a blow, a deferral judge in Manhattan refused to quash a lawsuit filed against the entity. The lawsuit slams the bank as well as its previous board members including the ex CFO and ex CEO. The lawsuit was filed as charges of the bank and its top management hiding the straggling company it had acquired surfaced later. The lawsuit also alleged that the ex CEO and other members of the board hid the details of the condition of Merrill Lynch to the investors two years back when it was bought over by the bank. P. Kevin Castel, the U.S. District Judge wrote in his 140 page long verdict that the lawsuit against Bank of America and some of its former executives cannot be dismissed.
A week back, Kenneth Lewis the former Chief Executive of the bank lashed out at another lawsuit filed by the state attorney general. Shirley Norton a spokeswoman for Bank of America said that the bank is reviewing the verdict and respond accordingly. This lawsuit was filed by the shareholders of the bank. Kenneth Lewis got accolades for rescuing Merrill Lynch two years back by buying it and it was the day when the Lehman Brothers Holdings Inc had failed.
However, the loss incurred by the straggling Merrill Lynch forced Bank Of America to seek federal bailout money later. Earlier this year the bank settled a civil fraud case over the merger with the U.S. Securities and Exchange Commission. The bank management is now readying its new plans to fight the case.
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- Bank Of America Appoints Brian Moynihan As New CEO - Dec 17, 2009
- Bank Of America Resolves Countrywide Data Theft Fiasco - Aug 28, 2010
- Maid case: India awaits final verdict - Feb 24, 2012
- U.S. government threatened BoA's management if it did not continue Merrill merger - Apr 24, 2009
- Lehman exits bankruptcy - Mar 07, 2012
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- Bank Of America Might Face Additional Charges From SEC For Paying Bonus - Jan 12, 2010
- Bank of America posts $2.2 bn loss - Oct 16, 2009
- Fed Reserve gave $9 trillion emergency loans to US banks - Dec 02, 2010
- Indian diplomat asked to pay $1.5 mn to abused housemaid - Feb 24, 2012
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