BofA Shareholders’ Key Claims in Merger Disclosure Class Action Can Go Forward, Judge Rules
A federal judge has green-lighted key claims by Bank of America shareholders in a securities class action and companion derivative suit over the bank’s merger with Merrill Lynch. The judge found that the class action complaint adequately pleads that Bank of America did not make sufficient disclosures about the existence of a controversial $5.8 billion bonus pool to be used to pay Merrill employees before the merger, and that the companies’ former CEOs acted with scienter in hiding the bonus pool from BofA shareholders.
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Action, BofA, Claims, Class, Disclosure, forward, Judge, Merger, rules, shareholders