Bank of America Corporation (NYSE: BAC) Investor Securities Class Action Lawsuit 02/02/2011

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Company Name(s): 
Bank of America
Case Name: 
Bank of America Shareholder Class Action Lawsuit 2/02/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: BAC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/02/2011
Class Period Begin: 
02/27/2009
Class Period End: 
10/19/2010
Court of Filing: 
U. S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/04/2011
Date Settled: 
06/15/2016
Settlement Amount: 
$335,000,000
Deadline to Participate in Settlement: 
11/14/2016
Summary: 

December 27, 2016 - The court approved the settlement.

June 15, 2016 - The court preliminarily approved the settlement.

March 11, 2016 - Parties filed a stipulation of settlement.

April 17, 2013 - The court denied the defendants' motion to dismiss.

November 5, 2012 - The defendants filed a motion to dismiss.

August 28, 2012 - The court denied the defendants' motion for reconsideration.

August 13, 2012 - The lead plaintiff filed an amended consolidated complaint.

July 25, 2012 - The defendants filed a motion for reconsideration.

July 11, 2012 - The court in part denied and in part granted the defendants' motion to dismiss.

January 11, 2012 - The defendants filed a motion to dismiss.

September 23, 2011 - The lead plaintiff filed a consolidated complaint on behalf of investors who purchased Bank of America Corporation common shares between February 27, 2009 and October 19, 2010. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 27, 2009 and October 19, 2010.

June 20, 2011 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

April 4, 2011 - Lead plaintiff motions were filed.

February 2, 2011 - An investor in shares of Bank of America Corporation (NYSE: BAC) filed a lawsuit in the U.S. District Court for the Southern District of New York against Bank of America Corporation (NYSE: BAC) over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 20, 2010 and October 19, 2010.

According the complaint the plaintiff alleges on behalf of all purchasers of Bank of America Corporation (NYSE: BAC) common stock during the period between January 20, 2010 and October 19, 2010 that Bank of America Corporation and certain of its officers and directors violated against the Securities Exchange Act of 1934.

The complaint alleges that between January 20, 2010 and October 19, 2010 defendants issued materially false and misleading statements regarding the Company’s business. Defendants concealed defects in the recording of mortgages and improprieties with respect to the preparation of foreclosure paperwork that harmed Bank of America Corporation’s investors when Bank of America Corporation had to temporarily discontinue foreclosures and admit to the problems it was experiencing. For much of between January 20, 2010 and October 19, 2010, defendants allegedly also concealed that Bank of America Corporation had previously engaged in a practice known as “dollar rolling,” wherein it omitted billions of dollars in debt from its balance sheet reported to the public. According to the complaint, as a result of defendants’ false statements, Bank of America Corporation’s stock traded at artificially inflated prices between January 20, 2010 and October 19, 2010, reaching a high of $19.48 per share on April 15, 2010.

Beginning in May 2010, Bank of America Corporation began disclosing aspects of its “repo-to-maturity” transactions (dollar rolling), claiming the transactions did not have a material impact on Bank of America Corporation’s balance sheet. Later, in October 2010, Bank of America Corporation announced a nationwide foreclosure halt pending a review of its foreclosure processes and whether there were irregularities with respect to its previously completed foreclosure activities. Then, on October 19, 2010, Bank of America Corporation announced its third quarter 2010 financial results, reporting a net loss of $7.3 billion and a diluted earnings per share loss of $0.77. Bank of America Corporation further reported receiving $18 billion in claims about faulty home loans that it may have to repurchase. On this news, Bank of America Corporation stock dropped $0.54 per share, to close at $11.80 per share on October 19, 2010 – a one-day decline of 5% and a nearly 42% decline from the stock’s high between January 20, 2010 and October 19, 2010.