Funds May Sue Bank of America (BAC) Over Merrill Acquisition
Ohio's Attorney General Richard Cordray said yesterday that he soon could seek "billions" from Bank of America (NYSE: BAC), including CEO Kenneth Lewis, over how it handled the purchase of Merrill Lynch.
Cordray filed an amended lawsuit on behalf of five pension funds, alleging that BAC, its directors and four executives hid widening losses at Merrill prior to the December shareholder vote to approve the merger.
In addition to Lewis being named in the suit, BAC CFO Joe Price, accounting chief Neil Cotty and John Thain, the former Merrill chairman and CEO were also named in the filing.
A Bank of America spokesperson told the WSJ, "We are confident we disclosed all that was required and look forward to presenting our position to the court."
The pension funds had previously filed individual complaints, but joined their suits Friday after a judge granted Cordray's office lead-plaintiff status.
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