September 28, 2012
--- Ohio
Attorney General Mike DeWine announced an historic $2.43 billion settlement in
a class-action lawsuit with Bank of America (BofA). ---
The complaint alleges statements made in 2008 regarding the
BofA merger with Merrill Lynch kept under wraps billions of dollars in known
losses and billions more in accelerated agreed-upon bonuses to be paid to
Merrill Lynch executives and employees (see “Lead Plaintiff Group in BofA Suit over Merrill Deal Files
Amended Suit”). The lead plaintiff group includes the State Teachers
Retirement System of Ohio; the Ohio Public Employees Retirement System; the
Teacher Retirement System of Texas; Stichting Pensioenfonds Zorg en Welzijn,
represented by PGGM Vermogensbeheer B.V.; and Fjärde
AP-Fonden.
It is estimated that the State Teachers Retirement System of
Ohio and the Ohio Public Employees Retirement System will receive a total of
$20 million. This could be higher or lower depending on the number of claims
filed. In addition to the Ohio public pension systems, approximately 70,000
individual Ohioans are potential class members in the case.
According to the DeWine’s announcement, the settlement is
the single largest securities class action settlement ever resolving a Section
14(a) claim—the federal securities provision designed to protect against
misstatements in connection with a proxy solicitation. The settlement is one of
the four largest settlement amounts ever funded by a single corporate defendant
for violations of the federal securities laws, and the settlement is the
largest securities class-action settlement where executives of the defendant
were not criminally charged.
PLANADVISER staff