Bank Of America Pays $2.4 Billion To Settle Charge It Misled Investors

Posted on

"Bank Of America Pays $2.4 Billion To Settle Charge It Misled Investors"

Bank of America will pay shareholders $2.43 billion to settle a lawsuit with investors over its acquisition of Merrill Lynch in the run-up to the 2008 financial crisis, the company announced Friday. Shareholders accused Bank of America of making misleading statements about the health of both its company and Merrill Lynch before the acquisition, and though Bank of America denied the allegations, it chose to settle to end the suit, the New York Times’ DealBook reports. “Resolving this litigation removes uncertainty and risk and is in the best interests of our shareholders,” CEO Brian Moynihan said in a statement. The bank’s stock price dropped slightly ahead of the market’s opening bell this morning.

« »

By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.