A class action lawsuit was filed against Bank of America Corporation in the United States District Court for the Southern District of New York on behalf of persons and entities that purchased certain Bank of America Corporation (“BofA”) shares of Fixed to Floating Rate Non-Cumulative Preferred Stock Series K, shares of the BofA 7.25% Non-Cumulative Perpetual Convertible Stock Series L, or shares of the BofA 8.20% Non-Cumulative Preferred Stock, Series H pursuant or traceable to the Registration Statement and Prospectuses issued in connection with the securities offering, according to news reports.
The class action lawsuit reportedly alleges that Bank of America Corporation violated the Securities Act of 1933 by omitting from the Registration Statement and Prospectuses that: (a) Bank of America’s loans, leases, CDOs, and commercial mortgages backed securities were impaired to a far greater extent than disclosed, (b) Bank of America failed to properly record losses for impaired assets, (c) Bank of America’s internal controls were inadequate to prevent Bank of America from improperly reporting its impaired assets, and (d) Bank of America’s capital base was inadequate relative to the magnitude of impaired assets.
If you would like more information about the Bank of America class action lawsuit or would like to speak with a class action lawyer, contact Finkelstein & Krinsk LLP.