January 14, 2011 by USA Post
Bofa, New York State Common Retirement Fund, Albany, and will receive 4.25 million Bank of America to settle a lawsuit for securities fraud filed by the Fund and 132.8 billion against Merrill Lynch and two former company officials, Olayinka Fadahunsi confirmed, spokesman Thomas P. DiNapoli, New York State Comptroller and sole trustee of the fund.
E. Stanley O’Neal, former CEO of Merrill Lynch, and Jeffrey N. Edwards, former president of vice, were also named in the complaint and made part of the colony. Bank of America acquired Merrill Lynch in 2008.
According to court documents filed in July in U.S. District Court in New York, the fund alleged Merrill Lynch and its former executives have not disclosed the extent of participation of society in and exposure to subprime mortgage -backed securities and, therefore, artificially inflated the share price of the company. When actual exposure to the subprime MBS risk was known, the share price has dropped Merrill Lynch and caused losses to investors such as funds from New York, court documents claimed.
“The fund has been misled about the extent of the involvement of Merrill Lynch in the subprime mortgage fiasco is unacceptable,” Mr. DiNapoli said in a news release.
Shirley Norton, a spokesman for Bank of America, confirmed the settlement and 4.25 million, but said the company declined to comment further.
Neither counsels for Mr. O’Neal, Michael J. Chepiga, a partner at Simpson Thacher & Bartlett, neither Mr. Edwards’s lawyer, Antonio Yanez Jr., a partner at Willkie Farr & Gallagher, returned calls seeking comment.
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