Bank of America settles class action lawsuit for $2.43 millionSeptember 28, 2012 1:16 pm Leave your thoughts
As previously reported by this blog, investor lawsuits present significant challenges for business owners, executives and CEOs. This is why it is vital for those running a company to be completely honest when discussing the firm's financial status with shareholders. However, some companies in Arizona may be sued by investors and, as such, consulting a Phoenix business lawyer experienced in dispute resolution could be beneficial for the business owner.
One company that has been accused by shareholders of not providing full disclosure over its financial standing is Bank of America, according to the Associated Press. The company has decided to settle the resulting class action investor lawsuit and agreed to pay $2.43 billion to shareholders.
"As we work to put these long-standing issues behind us, our primary focus is on the future and serving our customers and clients," Bank of America CEO Brian Moynihan said in a statement.
The investors also alleged that Bank of America provided misleading statements on behalf of the financial health of Merrill Lynch after the acquisition of the company. Merrill Lynch posted more than $27 billion worth of losses in 2008, which is the same year that Bank of America acquired the corporation.
Reuters reported that Bank of America will have to manage $1.6 billion in litigation expenses for the last working quarter, which ends on September 30. The company did release a statement saying that these expenditures will cause losses for investors by approximately 28 cents per share.
Companies in Arizona that find themselves in the midst of an investor lawsuit will need experienced Phoenix business law attorneys to provide legal help in the case.
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