Thursday, March 18, 2010

Bank of America (NYSE:BAC) Sued for Almost $100 Million

Bank of America Sued for close to $100 Million over Merrill Lynch Deal Again

A Dutch pension fund has filed a lawsuit against Bank of America (NYSE:BAC) for almost $100 million, saying the company hid the amount of losses Merrill Lynch had suffered when they were taking over Merrill in 2008.

ABP, with over $285 billion under management, claims in the lawsuit they never knew how deep the losses were at Merrill, which could have resulted in the deal being voted against when the merger was being pushed through.

The suit by ABP says billions in losses were kept from the eye of investors, which kept them from the data needed to make an informed decision.

Bonuses at Merrill Lynch were brought up again in this suit, saying the details of the compensation for executives at Merrill were also withheld from them.

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