Northern, WI 04/08/2013 (usastockreport) – The Federal judge approved the settlement of the Bank of America Corp’s (NYSE:BAC) with the investors of around 2.4 billion dollars who have lost all their money due to the acquisition of the bank of the Merill Lynch & Co. The district judge of the U.S., Kevin Castell in the district of the Manhattan said during the hearing that the settlement is really reasonable, fir and adequate and later he granted his overall approval.
A Charlotte, North Carolina based bank which is the Bank of America has reached up to the settlement in the month of the September, which was some weeks before the trial which was scheduled to get started in the case. Along with the cash amount of the 2.4 billion dollars, the bank has also agreed to make some of the reforms in its governance of the corporate. The pact which was made helped in the resolving of the litigation of the shareholders which was led by some institutional shareholders which also included the Ohio public employee’s retirement system. The investors during the trial claimed that the Bank of America proved to be a great failure while disclosing the data about the major losses at the Merill Lynch and the bonuses which were paid to the employees of the Meryl Lynch before the brokerage which was being acquired by the Bank of America early in the month of January 2009 which was amounted to about 18.5 billion dollars.
Mike DeWine, the attorney General of the Ohio said that there was some great reference to the losses but the magnitude which is the amount of the losses was never disclosed by the bank. This information was revealed by the person during a press conference in the month of September after the accord was announced publically. The attorney general also said that this would be really akin to reveal to someone to watch out for the pothole when they were already in the stage of falling in the Grand Canyon. The chief executive officer Brian T. Moynihan said that this resolving of the litigation removes the uncertainty totally and also the risk. In addition to these this is also in the best interest of the shareholders.