| Company: | Bank of America |
| Ticker Symbol: | BAC |
| Class Period: | Jun-11-03 to Feb-13-08 |
| Date Filed: | Jul-23-08 |
| Lead Plaintiff Deadline: | Sep-21-08 |
| Court: | U.S. District Court for the Southern District of Illinois. |
| Allegations: | |
Bank of America offered and sold auction rate securities to the public as highly liquid cash-management instruments and as suitable alternatives to money market mutual funds, the suit alleges.
On Feb. 13, all of the major broker-dealers, including Bank of America, withdrew their support for the auctions, leaving the market to crumble and investors unable to access their money.
The investors involved in the suit bought the securities between June 11, 2003 and Feb. 13, 2008.
The lawsuit is pending in the U.S. District Court for the Southern District of Illinois.
The lawsuit alleges that Bank of America failed to disclose the following facts to investors:
The auction rate securities were not cash alternatives like money market funds but were instead complex long-term financial instruments with 30-year maturity dates.
The auction rate securities were only liquid at the time of the sale because Bank of America and other broker-dealers were artificially supporting and manipulating the market to maintain the appearance of liquidity and stability.
Bank of America and other broker-dealers routinely intervened in the auctions for their own benefit to set rates and to prevent all-hold auctions and failed auctions.
Bank of America continued to market auction rate securities as liquid investments even after Bank of America and other broker-dealers determined that they would likely be withdrawing support for the periodic auctions and that a freeze of the auction rate securities market would result.
Auction rate securities are municipal or corporate debt securities or preferred stocks that pay interest at rates set through periodic auctions.
The instruments typically have long-term maturity dates or no maturity date.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
