Lawsuit vs Bank of America over AIG disclosures dismissed
NEW YORK, Nov 4 (Reuters) - Bank of America Corp has won the dismissal of an unusual lawsuit by shareholders accusing it of concealing a $10 billion fraud case brought by American International Group Inc.
In a decision made public on Monday, U.S. District Judge John Koeltl in Manhattan said the second-largest U.S. bank was not required to disclose the alleged imminence of the AIG lawsuit, or the scope of potential losses.
He said this was because the news was not materially different from previously disclosed information, the bank made no incomplete or inaccurate statements, and there was no duty to disclose the information sought.
AIG sued Bank of America on Aug. 8, 2011, alleging misrepresentations about the quality of more than $28 billion of mortgage-backed securities it bought from the bank and its Countrywide and Merrill Lynch units. Bank of America shares fell 20.3 percent on the day that case was filed.