November 19th, 2012|
November 19, 2012
As many as 70,000 Ohioans were among the lead plaintiffs in a class-action lawsuit filed on behalf of investors who bought or held Bank of America stock at the time the company announced its plan to buy Merrill Lynch, reports the Columbia Dispatch.
At about the same time that Lehman Brothers collapsed and Merrill Lynch teetered on the edge of bankruptcy, Bank of America made a $50 billion deal with Merrill Lynch, causing their stock to drop.
Two of the Ohio pension funds in the lawsuit against Bank of America stand to regain a portion of the money lost. The state and the bank agreed to pay a $2.43 billion settlement to the State Teachers Retirement System of Ohio and the Ohio Public Employees Retirement System.
The suit accused the bank and Merrill Lynch of violating federal securities laws by making false statements, withholding information, and not disclosing an agreement allowing them to pay billions of dollars in bonuses despite their losses.
When the lawsuit was filed, pension-fund officials estimated that the public-employees fund had lost $50 million and the teachers fund $34 million.
The public-employees fund should end up with about $11.8 million while the teachers fund should get about $9.7 million from the settlement.