Bank of America Corp Seeks End To Lawsuit Tied To American International Group, Inc. Case-Reuters

Reuters reported that Bank of America Corp is urging a federal court to throw out an unusual lawsuit by its shareholders accusing it of concealing a $10 billion fraud case brought by American International Group, Inc. The bank argued in papers filed late Tuesday in Manhattan federal court that shareholders should have known the insurer might sue, based on published reports several months earlier. Bank of America also contended that shareholders may not have been harmed by the insurer's lawsuit. American International Group sued Bank of America on August 8, 2011, alleging misrepresentations about the quality of more than $28 billion of mortgage-backed securities it bought from the bank and its Countrywide and Merrill Lynch units. In its Tuesday court filing U.S. bank said reports published in the New York Times and elsewhere noted the possibility of American International Group litigation as early as April 2011.