In an opinion today, Judge Koeltl dismissed a class action accusing Bank of America of failing to disclose that AIG had threatened to sue the bank for misrepresenting the quality of mortgage-back securities. Judge Koeltl found that the risk was already known:
Continue Reading Judge Koeltl Dismisses Suit Accusing Bank of America of Failing to Disclose AIG Suit
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Bank of America Moves to Dismiss Class Action Alleging Failure to Disclose AIG Lawsuit
By Charles Michael on
Bank of America on Tuesday moved to dismiss a class action accusing it of failing to disclose that AIG had threatened to sue the bank for misrepresenting the quality of mortgage-back securities. The plaintiffs allege the fraud came to light when the AIG suit was filed, and Bank of America’s stock dropped. Bank of America’s motion argues that the overall risk of mortgage-backed securities litigation was well known, even if the specific AIG suit wasn’t disclosed:
Continue Reading Bank of America Moves to Dismiss Class Action Alleging Failure to Disclose AIG Lawsuit