Only 10 days remain before the Nov. 22, 2011, lead plaintiff deadline in a case filed against Bank of America (NYSE: BAC) (“BAC”) alleging the bank misled investors regarding a $10 billion claim by American International Group (NYSE: AIG).
According to the lawsuit, BAC, Merrill Lynch & Co. and Countrywide Financial sold $28 billion in mortgage-backed securities to AIG. After analyzing data from hundreds of thousands of loans, in Jan. 2011 AIG allegedly informed BAC that it felt the risk of the securities had been misrepresented and was prepared to sue the banking giant for more than $10 billion.
AIG finally filed a lawsuit against BAC on Aug. 8, 2011, following months of reported negotiations. On the news, BAC shares fell sharply, losing 20 percent of their value.
Investors with losses over $500,000 who purchased Bank of America common stock during the class period, from Feb. 25, 2011, to Aug. 5, 2011, are encouraged to contact Partner Reed R. Kathrein, who is leading Hagens Berman’s investigation. Reed R. Kathrein can be reached at (510) 725-3000 or via email at BACSecurities@hbsslaw.com.
The lawsuit centers around claims that BAC failed to fully disclose the risks of a pending legal battle with AIG.
Individuals with direct non-public information that may help advance the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Investors can also learn more about this investigation at www.hbsslaw.com/BACsecurities.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The National Law Journal has rated Hagens Berman as one of the top plaintiffs’ firms in the country five times. More information about the firm is available at www.hbsslaw.com, and the firm’s securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or firstname.lastname@example.org
Web Site: http://www.hbsslaw.com
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Filed under: Business
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