CASES
Bank of America Corporation
Class Period: Feb 25, 2011 to Aug 5, 2011
Lead Plaintiff Deadline: Nov 22, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Bank of America Corporation ("BofA" or the" Company") on behalf of all purchasers of the common stock of BofA between February 25, 2011 and August 5, 2011. This case has been filed in the USDC - SOUTHERN DISTRICT OF NEW YORK.
The complaint alleges that during the Class Period, defendants misled investors by failing to disclose that BofA potentially owes American International Group, Inc. ("AIG") over $10 billion. Specifically, between 2005 and 2007, BofA and two companies that BofA acquired - Merrill Lynch & Co, Inc. ("Merrill Lynch") and Countrywide Financial Corporation ("Countrywide") - and their subsidiaries sold AIG over $28 billion in residential mortgage-backed securities("RMBS"). As a result of these sales, AIG suffered losses in excess of $10 billion and BofA was potentially subject to suit for those losses.
Throughout the Class Period, defendants repeatedly informed investors about the claims of other entities for RMBS losses but not about the massive losses suffered by AIG. Subsequently, on August 8, 2011, AIG filed suit against BofA in New York state court seeking to recover the losses it had suffered from the RMBS that BofA, Countrywide, and Merrill Lynch had sold it between 2005 and 2007. As a result, the price of BofA's common stock dropped from a closing price of $8.17 per share on August 5, 2011 to $6.51 per share on August 8, 2011, a decline of more than 20% in one trading day. This decrease was a result of the artificial inflation caused by defendants' misleading statements coming out of the price.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.