Bank of America: Investor group challenges $8.5 billion settlement

July 22, 2011 by

A short while ago, Bank of America entered into an $8.5 billion settlement with a group of institutional investors such as Blackrock, Inc., the Federal Reserve Bank, and Pimco of a lawsuit alleging that Bank of America sold poor-quality mortgage bonds to investors knowing that they were not as represented.

On July 5, 2011, a group of bond investors, calling themselves Walnut Place, said they objected to the terms of the settlement.  In a filing with the New York Supreme Court, the investors said they wanted to be excluded from the settlement that was struck after negotiations between the bank and 22 institutional investors.  The settlement was meant to cover a broader group of investors being represented by a trustee.

The Walnut Place group said the 22 investors were self-appointed and didn’t represent or solicit the views of the broader group of bondholders.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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