X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Directors of banking monolith Bank of America Corp. agreed to repay the company $2.5 million to settle a derivative suit filed in Wilmington, Del., by shareholders who contend they wasted corporate assets by giving former board members $6 million in gifts after a 1998 merger. Charlotte, N.C.-based Bank of America, formerly known as NationsBank Corp., was formed by the merger of NationsBank with BankAmerica. The new company’s directors subsequently mailed gifts, including $300,000 in cash and new stock, to each of 20 former directors of the two companies. BankAmerica shareholders Frank Seinfeld and Victoria Shaev filed suit in 1999 in Chancery Court in Wilmington, claiming the gifts were extravagant and amounted to corporate waste. Their suit asked a judge to order the new directors to repay the company for the gifts. After negotiations with shareholders’ lawyers, the new directors who were named as defendants in the suit agreed to pay Bank of America $2.5 million. Seinfeld and Shaev agreed to drop their suit because they concluded the settlement was “in the best interests of the company and all of its stockholders,” according to court papers. The settlement, which still must be approved by a judge, includes a provision that the company will pay Seinfeld’s and Shaev’s lawyers $500,000 in fees and expenses for challenging the gifts. Seinfeld and Shaev are represented in the case by Norman M. Monhait of Wilmington’s Rosenthal Monhait Gross & Goddess and A. Arnold Gershon of New York. BankAmerica’s directors are represented by R. Franklin Balotti and J. Travis Laster of Wilmington’s Richards Layton & Finger, while the bank itself is represented by Joel Friedlander of Wilmington’s Bouchard Margules & Friedlander. The case is Frank David Seinfeld and Victoria Shaev v. Charles W. Coker, et. al., CA No. 16964.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.