When Bank of America Corp. agreed to pay $2.43 billion in connection with its acquisition of Merrill Lynch & Co., it marked the largest shareholder class action settlement arising from the 2008 financial crisis. Radnor, Pa.-based Kessler Topaz Meltzer & Check, known for representing large institutional investors in securities fraud and shareholder derivative actions, was co-lead counsel, along with Kaplan Fox & Kilsheimer and Bernstein Litowitz Berger & Grossmann.
The 2009 Southern District of New York suit alleged the banks and certain executives concealed billions in losses by Merrill Lynch. David Kessler and Gregory Castaldo led the Kessler Topaz team representing five pension funds, handling witness depositions, reviewing documents, preparing experts, contesting motions to dismiss, helping win class certification and litigating summary judgment motions. Approved by U.S. District Judge Kevin Castel on April 5, 2013, the agreement represents the largest payout for alleged violations of Section 14(a) of the Securities Exchange Act.
