Bank of America Corporation (NYSE: BAC) Investor Securities Class Action Lawsuit 05/22/2008

If you purchased auction rate securities of Bank of America Corporation (NYSE: BAC), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Bank of America
Case Name: 
Bank of America Shareholder Class Action Lawsuit 05/22/2008
Case Status: 
Case Dismissed
Affected Securities
NYSE: BAC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/22/2008
Class Period Begin: 
05/22/2003
Class Period End: 
02/13/2008
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
07/21/2008
Case Dismissed: 
01/04/2012
Summary: 

January 4, 2012 - The lead plaintiffs filed notice of voluntary dismissal without prejudice.

February 24, 2011 -The court granted the defendants' motion to dismiss.

June 21, 2010 - The defendants filed a motion to dismiss.

May 4, 2010 - The lead plaintiffs filed a consolidated class action and individual complaint on behalf of investors who purchased auction rate securities of Bank of America Corporation (NYSE: BAC) between May 22, 2003 and February 13, 2008. The lead plaintiffs allege that the defendants violated the the Securities Exchange Act of 1934 by issuing false and misleading statements between May 22, 2003 and February 13, 2008.

March 29, 2010 - The court terminated the defendants' motion to dismiss.

February 11, 2010 - The defendants filed a motion to dismiss.

December 28, 2009 - An individual plaintiff filed an amended complaint.

September 9, 2009 - The defendants filed a motion to dismiss.

August 26, 2009 - A new lead plaintiff was appointed.

July 27, 2009 - A renewed lead plaintiff motion was filed.

July 9, 2009 - The court granted in part and denied without prejudice in part the lead plaintiff's motion to withdraw and substitute lead plaintiff.

June 12, 2009 - Another investor filed a complaint in the U.S. District Court for the Eastern District of New York.

June 9, 2009 - The lead plaintiff filed a motion to withdraw and substitute lead plaintiff.

May 12, 2009 - The lead plaintiff filed a second amended complaint.

March 30, 2009 - The defendants filed a renotice of motion to dismiss.

March 13, 2009 - The defendants filed a motion to dismiss.

February 12, 2009 - The court ordered a transfer of three actions into a multi-district lawsuit in the U.S. District Court for the Northern District of California.

January 22, 2009 - The lead plaintiff filed an amended complaint.

October 23, 2008 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York.

October 21, 2008 - Another investor filed a complaint in the U.S. District Court for the Northern District of Illinois.

August 5, 2008 - Lead plaintiff and lead counsel were appointed.

June 23, 2008 - Another investor filed a complaint in the U.S. District Court for the Southern District of California.

May 22, 2008 - An investor in auction rate securities of Bank of America Corporation (NYSE: BAC) filed a lawsuit in the U.S. District Court for the Northern District of California against Bank of America Corporation over alleged violations of Federal Securities Laws.

The complaint alleges that Bank of America Corporation failed to disclose the following material facts about the auction rate securities it sold to the class: (1) the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer; (2) the auction rate securities were only liquid at the time of sale because Bank of America Corporation and other broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability; (3) Bank of America Corporation and other broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions; and (4) Bank of America Corporation continued to market auction rate securities as liquid investments after it had determined that it and other broker dealers were likely to withdraw their support for the periodic auctions and that a “freeze” of the market for auction rate securities would result.

The complaint alleges that, pursuant to uniform sales materials and top-down management directives, Bank of America Corporation offered and sold auction rate securities to the public as highly liquid cash-management vehicles and as suitable alternatives to money market mutual funds. According to the complaint, holders of auction rate securities sold by Bank of America Corporation and other broker-dealers have been unable to liquidate their positions in these securities following the decision on February 13, 2008 of all major broker-dealers including Bank of America Corporation to “withdraw their support” for the periodic auctions at which the interest rates paid on auction rates securities are set.

The complaint alleges that Bank of America Corporation violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.