In a December 6, 2011, article from Bloomberg News, we learn that Bank of America Corp. (BAC) reached a $315 million settlement with class action plaintiffs who sued its Merrill Lynch unit over claims tied to mortgage-backed securities, according to a filing in Manhattan federal court.
Merrill Lynch was sued starting in December, 2008, by asset- backed certificate holders for alleged “false and misleading” prospectus statements related to $85 billion in securities, according to a brief filed yesterday with the court.
The plaintiffs said inaccurate statements were made about qualifications of mortgage-loan borrowers, property appraisals, and debt-to-income ratios of applicants, and “the registration statement materially misrepresented the credit quality of the mortgage loans underlying the certificates.”
The $315 million will be distributed to certificate holders who submit valid claim forms, plaintiffs’ lawyers said in court papers.
The Bloomberg News article concludes that Merrill Lynch contended losses experienced by investors were the result of “the overall economic downturn, housing price declines and reduced liquidity,” according to settlement papers.
Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced losses with Bank of America Corp., or Merrill Lynch, through asset backed securities, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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