News Summary: Bank of America settles suit
PROPOSED SETTLEMENT: Bank of America Corp. said Friday that it has agreed to pay $2.43 billion to settle a class-action lawsuit related to its acquisition of Merrill Lynch at the height of the financial crisis in 2008. The bank has also agreed to adopt several policies to improve corporate governance.
THE BACKGROUND: The shareholders who filed the suit alleged that Bank of America and some of its officers made false or misleading statements about both companies' financial health. The settlement is subject to approval by a federal judge.
THE RATIONALE: Bank of America says it agreed to the settlement to get rid of the uncertainties, burden and costs related to the lawsuit.