More lawsuits in Bank of America, Merrill Lynch controversy
It's the deal that keeps on giving, for attorneys anyway.
Bank of America's 2008 purchase of Merrill Lynch continues to generate an awful lot of litigation. There was the SEC lawsuit, which was settled for $150 million in 2010, but the private litigation has been perhaps just as contentious, and now we're seeing plaintiffs pitted against one another. One group has struck a settlement with the bank's directors for $20 million.
The New York Times notes that another plaintiffs group is none too pleased. It has sued the other plaintiffs group, arguing that the $20 million settlement is grossly unfair, in that it offers way too little compensation. It also charges the accord was the result of some form of collusion. The group that thinks the settlement is unfair argues that the directors should be made to pay sum that is not fully covered by insurance. It's unclear exactly how much is covered by the policies.
The group also argues that the $20 billion deal was struck by a group that has not performed extensive discovery and thus would have a hard time justifying the $20 million. This is scheduled for trial in October. The lawyers for the bank's directors would appear to have expertly played the plaintiff groups against one another.
- here's the article