Bank of America Corp Directors Settle Lawsuit Over Merrill Lynch & Co-Reuters

Reuters reported that Bank of America Corp directors have reached a definitive settlement of litigation by shareholders, who accused the bank of overpaying for Merrill Lynch & Co, a federal judge said on Wednesday. In a written order, U.S. District Judge P. Kevin Castel in Manhattan did not reveal the settlement terms, but said the settlement and request for preliminary approval should be filed with his court within 14 days. According to previously filed court papers, the settlement was expected to total $20 million and resolve claims that Bank of America directors misled shareholders about Merrill's soaring losses, and hid that Merrill was paying $3.6 billion of bonuses at the time. Among the defendants is Kenneth Lewis, the onetime Bank of America chief executive who engineered the takeover. Castel said he may delay final approval until after the end of October 22, 2012 trial he oversees in shareholder securities class-action litigation against the Charlotte, North Carolina-based Bank of America itself, where damages could be much larger.