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Kendall Law Group Announces Securities Class Action Against Bank of America Corporation

^{Published on 2009-12-29 08:00:16 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--Kendall Law Group, led by a former federal judge, today announced that a lawsuit has been filed against Bank of America Corporation (NYSE: BAC) for possible securities violations related to public statements made between September 15, 2008 and January 21, 2009.

The complaint, filed in the Southern District of New York, charges Bank of America and certain of its officers and directors with violations of the federal securities laws concerning statements made concealing Bank of America's agreement that Merrill Lynch employees would receive up to $5.8 billion in bonuses before the merger was consummated. Also, Merrill Lynch had suffered massive losses that were inherited by Bank of America in the merger. The complaint alleges that due to these misleading statements, BAC stock traded at artificially inflated prices during the relevant time period. While the prices were artificially inflated, the Company sold certain debt and equity securities, including 455 million shares of its common stock at $22 per share on October 10, 2008, raising approximately $10 billion capital.

On September 15, 2008, Bank of America announced their merger agreement with Merrill Lynch that was approved by shareholders of both companies on December 5, 2008. On January 16, 2009, Bank of America announced a $1.8 billion loss for the fourth quarter 2008, the first quarterly loss for the Company in 17 years. Bank of America slashed its dividend from $0.32 to a penny a quarter and reported that Merrill Lynch's preliminary results for the fourth quarter of 2008 indicated a net after-tax loss of $15.3 billion. Bank of America also confirmed that it would be receiving an additional $20 billion in government assistance and that the government would provide guarantees against further Merrill Lynch losses of $118 billion, with Bank of America covering the first $10 billion. Over the next several days, the details of the deal began to emerge.

Any shareholder, who purchased BAC stock during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by February 20, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, affected by the decision to serve as a lead plaintiff. Any member of the class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Led by a former federal judge and former U.S. Attorney, Kendall Law Group has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder, contact attorney Hamilton Lindley at 877-744-3728 or [ hlindley@kendalllawgroup.com ].