April 25 Bank of America Corp's former
finance chief, Joe Price, has agreed to pay $7.5 million to
settle a lawsuit that accused the bank and its former executives
of misleading investors during the lender's acquisition of
Merrill Lynch, the Wall Street Journal reported.
Price also agreed to not serve as an officer or director of
a public company for 18 months, the newspaper said. The pact is
expected to be filed in a state court as soon as Friday. (r.reuters.com/tar78v)
A spokesman for Charlotte, North Carolina-based Bank of
America declined to comment on the Journal report. While, the
New York State Attorney General Eric Schneiderman's office was
not immediately available for comment outside regular U.S.
Last month, Reuters reported that Kenneth Lewis, the bank's
chief executive from 2001 to 2009, had agreed to pay $10 million
to resolve claims by Schneiderman that Lewis misled shareholders
and the government in order to complete the Merrill Lynch
New York accused Lewis of concealing Merrill's mounting
losses from Bank of America shareholders prior to a Dec. 5, 2008
vote on the merger, and manipulating the U.S. government into
providing an extra $20 billion bailout by falsely claiming that
he would back out of the merger without the money.
At the time of Lewis's settlement, Price's lawyer, William
Jeffress, said Price had decided to continue defending the case.
Jeffress did not immediately respond to Reuters' request for
comment outside regular U.S. business hours.
(Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar