BofA settlement fund sets November deadline

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp shareholders have until November 12 to claim a piece of the $150 million settlement with U.S. securities regulators over the bank's 2009 Merrill Lynch purchase, the fund's administrator announced on Wednesday.

The SEC alleged in a lawsuit filed last year that BofA, in the months before it bought the investment bank in January 2009, failed to disclose $3.6 billion in bonuses Merrill Lynch paid its employees and $15.8 billion in fourth-quarter 2008 losses at the investment bank.

As part of the settlement, BofA agreed to pay $150 million into a "fair fund" to be distributed to owners of BofA stock who were injured by the alleged misconduct, according to a website set up by the Minneapolis-based Rust Consulting Inc to provide information about the distribution.

The fund was approved on February 22 by U.S. District Court Judge Jed Rakoff.

A spokesman for Charlotte, North Carolina-based BofA said the bank had no comment.

Shareholders who owned BofA stock as of January 16, 2009, are eligible for payouts from the fund. Shares received as part of the Merrill buyout are excluded from receiving compensation.

Eligible shareholders must submit a claim form by no later than November 12 to receive a payout from the fund.

Last year, U.S. District Court Judge Jed Rakoff rejected an initial settlement of $33 million. He said the settlement was too lenient and did not hold individuals at BofA responsible.

BofA shares up 63 cents, or 5 percent, to $13.07 in morning trade on the New York Stock Exchange.

The cases were SEC v. Bank of America Corp, U.S. District Court, Southern District of New York, Nos, 09-06829 and 10-00215.

(Reporting by Joe Rauch, editing by Gerald E. McCormick and John Wallace)