New York, NY: A $150 Million settlement in the lawsuit against Bank of American has received final approval. The lawsuit was brought by the US Securities and Exchange Commission based on allegations that the bank's disclosures regarding its acquisition of Merrill Lynch a year ago were lacking.
Judge Jed S. Rakoff is quoted as saying he believes the settlement is "far from ideal," referring to it as "paltry" and "half-baked justice." Last year, Judge Rakoff rejected a proposed $33 million settlement as inadequate.
As part of the settlement terms, Judge Rakoff ordered the $150 million to be distributed to shareholders who lost money on their Bank of America stock when it plunged in the wake of the Merrill Lynch merger.
The lead plaintiffs in the class action includes the State Teachers Retirement System of Ohio, the Ohio Public Employees Retirement System, and three other public pension funds.
