Prudential Financial claims in a suit filed in Newark federal court that Bank of America committed fraud by selling it $119 million in mortgage-backed securities that contained home loans issued under substandard underwriting practices.
Bank of America and its subsidiary, Merrill Lynch & Co., made misrepresentations about the quality of the certificates it sold to Prudential and about the residential mortgages underlying them, according to the suit. The suit says Prudential lost much of the market value in the securities it bought but does not quantify its losses.
