The lawsuit, filed in Delaware Court of Chancery, Wilmington, on Sept. 26, claims Merrill Lynch officials breached fiduciary duty in selling the company to Bank of America for $50 billion. It claims the price undervalues Merrill Lynch.
The suit names New York-based Merrill Lynch; John Thain, former CEO and chairman; members of its board of directors; and Charlotte, N.C.-based Bank of America as defendants.
Defendants have initiated a process to sell Merrill that undervalues the company and vests them with benefits that are not shared equally by Merrills public shareholders a clear effort to take advantage of the temporary depression in Merrills stock price caused by the economys current condition, according to the lawsuit.
Mark Herr, a Merrill Lynch spokesman, did not return a call by press time.
Calls for further information also were not returned by Robert Green, county controller; Doug Hoke, county commissioner; and Stewart Cohen, county attorney from the law firm of Cohen, Placitella & Roth, Philadelphia.