Judge approves $2.43B Bank of America settlement

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Associated Press

Posted on April 5, 2013 at 4:01 PM

NEW YORK (AP) — A New York judge approved Bank of America's $2.43 billion settlement of a class action lawsuit brought by shareholders over its acquisition of former competitor Merrill Lynch.

A Bank of America Corp. spokesman says a judge for the U.S. District Court for the Southern District of Manhattan approved the settlement Friday.

In the lawsuit, shareholders had alleged that Bank of America and some of its officers made false or misleading statements about both companies' financial health when Bank of America agreed to buy Merrill for $20 billion, at the height of the financial crisis in September 2008.

Charlotte, N.C.-based Bank of America later disclosed that Merrill would take $27.6 billion in losses that year.

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