Chimicles & Tikellis LLP Announces Court Approval Of $62.5 Million Settlement Of Bank Of America Derivative Litigation

Chimicles & Tikellis LLP Announces Court Approval Of $62.5 Million Settlement
                   Of Bank Of America Derivative Litigation

PR Newswire

WILMINGTON, Del., Jan. 18, 2013

WILMINGTON, Del., Jan. 18, 2013 /PRNewswire-USNewswire/ -- Chimicles &
Tikellis LLP is pleased to announce Court approval of a $62.5 million
settlement of derivative claims brought on behalf of Bank of America
Corporation relating to Bank of America's 2009 acquisition of Merrill Lynch &
Co. The settlement was approved by Judge Kevin Castel on January 11, 2013, in
In re Bank of America Corp. Securities, Derivative, and Employee Retirement
Income Security Act (ERISA) Litigation, 1:09-MD-02058 (PKC) ("New York
Action"). The $62.5 million settlement represents a significant improvement
of a $20 million settlement which was agreed to by the parties in the New York
Action in April 2012, and which was vigorously opposed by Chimicles & Tikellis
and its Co-Lead Counsel, Horwitz, Horwitz & Paradis and Wolf, Haldenstein,
Adler, Freeman & Herz LLP, on behalf of Delaware Plaintiffs who, at the time
the original $20 million settlement was announced, were preparing to go to
trial in the Delaware Court of Chancery in a separate parallel derivative
action relating to the Merrill Lynch acquisition,In re Bank of America
Corporation Stockholder Derivative Litigation, C.A. No. 4307-CS ("Delaware
Action"). On behalf of the Plaintiffs in the Delaware Action, Chimicles &
Tikellis and its Co-Lead Counsel aggressively opposed and objected to the
original $20 million settlement as grossly inadequate for Bank of America and
its stockholders based on the evidence developed in the Delaware Action and
experts engaged by Plaintiffs in the Delaware Action. As a result of the
Delaware Action Plaintiffs' objection and ensuing negotiations led by the
Delaware objectors, the settlement was revised to increase by more than three
times the amount to be paid to Bank of America Corporation in settlement.

Following Bank of America's January 1, 2009 acquisition of Merrill Lynch and
the subsequent disclosure of the dramatic deterioration of Merrill Lynch's
financial condition, litigation was commenced, including the Delaware Action
and the New York Action, both of which included derivative claims against Bank
of America's officers and directors responsible for breaches of fiduciary duty
and the failure to disclose critical facts about the Merrill Lynch merger.
Litigation proceeded in both actions, including the production of millions of
pages of documents and the taking of dozens of depositions. Pursuant to an
order of the Delaware Court of Chancery, the Delaware Action was scheduled for
trial before Chancellor Leo E. Strine, Jr. to commence on October 22, 2012.

On April 12, 2012, Bank of America announced that a settlement in principle of
all derivative claims had been reached with the Plaintiffs in the New York
Action which included a $20 million payment to Bank of America and Bank of
America's agreement to institute certain non-monetary corporate governance
reforms. That settlement, if it had been approved by the New York Court,
contemplated the release and dismissal of all derivative claims relating to
the Merrill Lynch acquisition including the claims in the Delaware Action. As
a result of the announced settlement, Chancellor Strine entered a stay of the
Delaware Action, but noted that if the settlement was not approved by the
federal court in New York all Defendants would proceed to trial in the
Delaware Action.

After nearly a year of aggressive opposition and objection to the original
settlement by Co-Lead Counsel in the Delaware Action on behalf of the Delaware
objectors, on January 4, 2013, Judge Castel entered an order directing the
counsel for the parties to the settlement in the New York Action to meet with
counsel for the Delaware objectors on January 7, 2013 to discuss revisions to
the settlement. This led to the revised settlement.

In presenting the revised settlement terms, counsel for the Individual
Defendants stated to the Court:

...during the course of this week we have been engaged in negotiations in
particular with the Delaware objectors, no longer objectors.

The settlement which resulted, and that resulted, obviously, from the
participation of Delaware... is now substantially larger, greater than three
times what we originally thought was an appropriate settlement.

Counsel for Bank of America added:

We commend all of the parties for how hard they worked in the past week. And,
in particular, counsel for the Delaware objectors who, in our view, in many
respects, are principally responsible for the increase in the cash component
of the settlement.

After four years of vigorous litigation seeking damages on behalf of Bank of
America, Chimicles & Tikellis is pleased that the revised settlement delivers
substantial value to Bank of America representing a more than three-fold
increase over the original settlement, bringing the litigation to a successful
conclusion for Bank of America and its stockholders.

CONTACT INFORMATION:
Pamela S. Tikellis
Robert J. Kriner, Jr.
Scott M. Tucker
CHIMICLES & TIKELLIS LLP
222 Delaware Avenue, Suite 1100
P.O. Box 1035
Wilmington, DE 19899
Telephone: (302) 656-2500
Fax: (302) 656-9053
Website: www.chimicles.com

For over twenty-five years, Chimicles & Tikellis LLP has pursued hundreds of
securities, consumer and shareholder rights cases and recovered billions of
dollars for its clients. The firm is nationally recognized, and its
litigators hold many professional honors and distinctions. Chimicles &
Tikellis LLP, 222 Delaware Avenue, P.O. Box 1035, Wilmington, DE 19899 (302)
656-2500.

SOURCE Chimicles & Tikellis LLP

Website: http://www.chimicles.com
 
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