Bank of America Loses Bid to Dismiss Fraud Claims

From the Insurance Journal – Bank of America and two former executives lost a bid on Friday to dismiss securities fraud claims alleging they misled investors about the bank’s 2008 acquisition of Merrill Lynch & Co.  From the article:

U.S. District Court Judge P. Kevin Castel ruled that plaintiffs could continue to pursue claims against the bank, former chief executive Kenneth Lewis and former chief financial officer Joe Price for failing to disclose Merrill’s deteriorating financial condition in the fourth quarter of 2008. But Judge Castel dismissed claims that the defendants had failed to disclose the federal government’s financial support to BofA for facilitating the Merrill deal. He also dismissed claims on behalf of holders of various preferred shares, debt and call options for lack of standing.

You can read the full summary here on the Insurance Journal website.

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The Professional Liability Underwriting Society (PLUS) was founded in 1986 by industry professionals who recognized the need for a forum for individuals involved in the field of professional liability. The Society is a non-profit organization with membership open to persons interested in the promotion and development of the professional liability industry. Membership consists of over 6,500 individuals, representing over 1,000 companies active in the many fields of professional liability. PLUS currently receives the support of more than 200 companies through corporate membership. PLUS is recognized as the primary source of professional liability educational programs and seminars, assistance to its members to help serve clients, and information regarding professional liability. The Society is continually seeking new means to fulfill its mission statement and better serve its members.

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