Bank of America Corp. has agreed to pay $2.43 billion to settle alleged federal securities law violations in its acquisition of Merrill Lynch & Co. Inc. in 2009.
A group of state and foreign pension funds had accused Bank of America of making false statements about its health and the health of Merrill Lynch. The settlement, subject to approval by U.S. District Judge P. Kevin Castel of New York, was announced on Sept. 28.
The plaintiffs said in a joint statement that the settlement was the largest of its kind to resolve a claim for alleged misstatements in connection with an attempt to secure shareholder votes. It’s also believed to be the one of the four largest funded by a single corporate defendant for violation of federal securities laws.
Judgment Against Iran Vacated
A federal judge in Washington, D.C., vacated a $22 million default judgment against the government of Iran in favor of a U.S. helicopter manufacturing company after the government mounted a defense.
U.S. District Judge Amy Berman Jackson ruled that because Iran hadn’t waived its sovereign immunity, the court lacked jurisdiction to consider the case. Iran could be subject to litigation if the alleged infringement had a “direct effect” on the United States, but Jackson found that it did not.
Bell Helicopter Textron Inc. sued the Iranian government and two Iranian helicopter manufacturing companies in 2006. Bell accused the defendants of selling helicopters that ripped off Bell’s patented designs.