Readers will remember back in 2008 when Bank of America damaged its own shareholders by refusing to disclose the nature and scope of Merrill Lynch's losses. Those losses, of 15 billion dollars, and the hiding of them by BofA, were made worse by the fact that Merrill was paying nearly 4 billion in bonuses at the same time. Bank of America did not disclose the Merrill Lynch losses until after the shareholders approved the merger.
Typical of Bank of America, and the shareholders sued. As we all know, Bank of America's stock is in the trash, at 8 dollars and falling, and down over 30% in the last 12 months alone.
Shareholders sued, and now some are objecting to a proposed $20 million settlement of the litigation, accusing the Board of collusion with the lead plaintiffs in the suit.
Judge Castel in the Southern District of New York will decide the issue this month.