Judge approves $2.4 billion Bank of America settlement

Posted on: June 5th, 2013 by Steve Larson

Stocks and sharesFederal Judge Kevin Castel approved a $2.4 billion settlement between Bank of America and investors who suffered losses in connection with the company’s $18.5 billion Merrill Lynch acquisition in January 2009.  “This was the antithesis of a collusive settlement,” Judge Castel said, characterizing the settlement as “fair, reasonable and adequate.” 

Brian Moynihan, the CEO of Bank of America, said that “[r]esolving this litigation removes uncertainty and risk and is in the best interests of our shareholders.” Bank of America consented to implementing corporate governance reforms in addition to paying $2.4 billion pursuant to the settlement.