BofA to Pay $2.43 Billion to End Investor Lawsuit Over Merrill
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Bank of America Corp. agreed to pay $2.43 billion to investors who suffered losses during its acquisition of Merrill Lynch & Co. in the largest settlement yet of a class-action shareholder lawsuit stemming from 2008’s financial crisis.
The bank will incur a $1.6 billion litigation expense in the third quarter, the Charlotte, North Carolina-based company said yesterday in a statement. The firm may post a loss for the period after projecting that legal costs, valuation adjustments and tax charges will reduce earnings per share by about 28 cents.