BofA Sued by Watertown Savings Over $130 Million Invested

Bank of America Corp., the second-largest U.S. bank, and other lenders were sued by Watertown Savings Bank over $130 million in investments.

Watertown Savings is asking for unspecified damages in connection with its investment in the AMF Ultra Short Fund and the AMF Ultra Short Mortgage Funds, according to a document filed today in New York State Supreme Court in Manhattan.

The savings bank is also seeking a redemption of residential mortgage-backed securities securitized by the defendants, according to the filing. It invested about $130 million in the funds from 2004 until it elected to take a “pro rata share” of the underlying investments, lawyers for Watertown Savings Bank said in the filing.

Bank of America declined to comment on the case, Lawrence Grayson, a company spokesman, said in an e-mail. Adam Gana, an attorney representing Watertown Savings Bank, declined to comment on the case in a telephone interview.

The case is Watertown Savings Bank v. Bank of America Corp., 651399/2012, New York State Supreme Court, New York County (Manhattan).

Before it's here, it's on the Bloomberg Terminal. LEARN MORE