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PennPSERS’ $335 million settlement approved in Bank of America class action

A Bank of America sign outside a branch in New Yor

Pennsylvania Public School Employees' Retirement System, Harrisburg, was awarded a $335 million settlement in a class-action lawsuit against Bank of America, said Evelyn Williams, spokeswoman for the $51 billion pension fund.

Judge William H. Pauley III of the U.S. District Court in Manhattan approved the cash settlement on Dec. 27. Preliminary approval of the settlement was made in late July.

PennPSERS was lead plaintiff on behalf of all investors that sustained losses after buying Bank of America Corp. common stock or common equivalent securities on a U.S. public exchange from Feb. 27, 2009, through Oct. 19, 2010.

A news release from the plaintiffs' law firm, Barrack, Rodos & Bacine alleged that Bank of America investors were misled during the period above about the company's exposure to demands to repurchase interests in mortgage-backed securities and other mortgage loans that had been sold by the company and its legacy entities.

The long-form notice of the settlement is available on the law firm's website.