| Company: | Bank of America Corporation |
| Ticker Symbol: | BAC |
| Class Period: | Sep-15-08 to Jan-21-09 |
| Date Filed: | Dec-29-09 |
| Lead Plaintiff Deadline: | Feb-27-10 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint, filed in the Southern District of New York, charges Bank of America and certain of its officers and directors with violations of the federal securities laws concerning statements made concealing Bank of America's agreement that Merrill Lynch employees would receive up to $5.8 billion in bonuses before the merger was consummated. Also, Merrill Lynch had suffered massive losses that were inherited by Bank of America in the merger. The complaint alleges that due to these misleading statements, BAC stock traded at artificially inflated prices during the relevant time period. While the prices were artificially inflated, the Company sold certain debt and equity securities, including 455 million shares of its common stock at $22 per share on October 10, 2008, raising approximately $10 billion capital.
On September 15, 2008, Bank of America announced their merger agreement with Merrill Lynch that was approved by shareholders of both companies on December 5, 2008. On January 16, 2009, Bank of America announced a $1.8 billion loss for the fourth quarter 2008, the first quarterly loss for the Company in 17 years. Bank of America slashed its dividend from $0.32 to a penny a quarter and reported that Merrill Lynch's preliminary results for the fourth quarter of 2008 indicated a net after-tax loss of $15.3 billion. Bank of America also confirmed that it would be receiving an additional $20 billion in government assistance and that the government would provide guarantees against further Merrill Lynch losses of $118 billion, with Bank of America covering the first $10 billion. Over the next several days, the details of the deal began to emerge.
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.
