NEW YORK Reuters A Manhattan federal judge refused to dismiss shareholder lawsuits against Bank of America Corp BAC.N and various executives and directors over the purchase of Merrill Lynch & Co during the 2008 financial crisis and disclosures about Merrills losses and bonus payouts.
U.S. District Judge P. Kevin Castel issued his 140-page ruling late on Friday afternoon. Nine days earlier, the largest U.S. bank and former Chief Executive Kenneth Lewis denied civil fraud charges made in a separate lawsuit by New York Attorney General Andrew Cuomo over the merger.
Castel said he dismissed part but not all of both a shareholder lawsuit against the company, and a lawsuit on behalf of the Charlotte, North Carolina-based bank claiming that company officials did not perform their jobs properly.
He dismissed all four claims brought against financial advisers retained by the bank in connection with the merger.
Bank of America did not immediately return a call seeking comment. Lawyers for plaintiffs in the shareholder lawsuits did not immediately return calls seeking comment.
The case is In re: Bank of America Corp Securities, Derivative and Employee Retirement Income Security Act ERISA Litigation, U.S. District Court, Southern District of New York, No. 09-2058.
Reporting by Jonathan Stempel in New York, editing by Matthew Lewis
Posts
