BofA Settles Merrill Fraud Suit for $150M

August 25, 2009 ( - Bank of America (BofA) will pay $150 million to settle a class-action lawsuit against Merrill Lynch accusing Merrill Lynch of lying to investors about the sale of its bonds and preferred stock.

Reuters reported that   U.S. District Judge Jed Rakoff scheduled a November 23 hearing to consider granting the settlement final approval. Rakoff gave the deal his preliminary blessing on Friday.

The Louisiana Sheriffs’ Pension and Relief Fund and the Louisiana Municipal Police Employees’ Retirement System, were the lead plaintiffs in the case in which Merrill stood accused of issuing false and misleading prospectuses and registration statements in connection with the offerings, which were made between 2006 and 2008.

The suit also named a number of former Merrill executives and directors as defendants, including former chief executives Stanley O’Neal and John Thain, Reuters said.

The case is In re Merrill Lynch & Co Inc Securities, Derivative and Erisa Litigation, U.S. District Court, Southern District of New York (Manhattan), No. 07-9633.