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Bank of America settles pension fund lawsuit over disclosure

Bank of America

Five pension funds on Friday announced a $2.43 billion settlement of a class-action lawsuit against Bank of America over information it did not provide regarding billions of dollars in losses at Merrill Lynch prior to its acquisition by BofA in January 2009.

Two of the lead plaintiffs, the $76.4 billion Ohio Public Employees Retirement System and $62.6 billion Ohio State Teachers’ Retirement System, both of Columbus, are estimated to receive a total of around $20 million as part of the settlement, according to a news release from Ohio Attorney General Mike DeWine.

Other lead plaintiffs in the lawsuit were the $108.9 billion Texas Teacher Retirement System, Austin; the €111 billion ($143.5 billion) Stichting Pensioenfonds Zorg en Welzijn, Zeist, Netherlands; and the 210 billion Swedish kronor ($32.2 billion) AP4, Stockholm.

The suit, filed in September 2009, also accused BofA of withholding information on accelerated bonuses for Merrill Lynch executives totaling $5.8 billion.

“Resolving this litigation removes uncertainty and risk and is in the best interests of our shareholders,” BofA CEO Brian Moynihan said in a statement. “As we work to put these long-standing issues behind us, our primary focus is on the future and serving our customers and clients.”