Bank of America Sued by SEC
In a ruling that freed Bank of America from some legal problems, a federal judge approved a $150 million settlement with the Securities and Exchange Commission.
The settlement stems from the bank’s merger with Merrill Lynch. In the months before the deal closed, Bank of America did not tell its shareholders about Merrill’s bonus payouts or the losses that led to a second government bailout of $20 billion.
BAC paid approximately $150 million into a Fair Fund that will be distributed to investors injured by the alleged misconduct.
According to the settlement "Notice", "This is the only way to be considered for payment. If you submit a claim you will also keep your right to sue Bank of America." If you choose to "Do Nothing", "You will not be considered for payment, and you will keep your right to sue Bank of America."