California High Court: Unpaid Wage Penalties Not Recoverable Under Section 17200

SAN FRANCISCO - (Mealey's) The California Supreme Court unanimously ruled Nov. 18 that statutory penalties for unpaid wages are not recoverable as restitution under the state's unfair competition law (UCL), Business and Professions Code Section 17200 ( Jorge A. Pineda v. Bank of America , No...

Foreclosure Class Actions Pile Up Against Banks

NEW YORK - (AP) Foreclosure-fraud class action lawsuits are starting to pile up against major banks across the U.S., threatening a besieged industry with billions more in potential losses. Bank executives are swarming Capitol Hill this week to defend themselves against multiple foreclosure-related investigations...

Thoughts About WikiLeaks And Executive Liability

Though it quickly recovered, Bank of America's share price declined earlier this week on speculation that the company is the bank whose internal documents WikiLeaks intends to post on the Internet at some future date. According to news reports , the WikiLeaks founder Julian Assange has asserted that...

SEC Reaches $137M Settlement With Bank Of America Subsidiary In Municipal Bond Investigation

WASHINGTON, D.C. - (Mealey's) A former subsidiary of Bank of America Corp. that is now part of Merrill Lynch, Pierce, Fenner and Smith LLP on Dec. 7 agreed to a $137 million settlement of a Securities and Exchange Commission investigation into allegations of bid rigging during the investment of proceeds...

Investors Allege Massive Fraud By Countrywide

(AP) A lawsuit alleges Countrywide Financial Corp. and two of its former executives misled institutional investors who were stuck with huge losses from mortgage-related investments that they say were portrayed as low-risk. The lawsuit was filed Monday in New York State Supreme Court by investors who...

California Settles Lawsuit Against Countrywide Executives

LOS ANGELES - (AP) The state of California has reached a settlement in a predatory lending lawsuit against former executives at Countrywide Financial Corp. that will pour $6.5 million into a fund to help foreclosed homeowners. The state had sued Countrywide, CEO Angelo Mozilo and President David Sambol...

Court OKs $624 Million Payout To Countrywide Investors

LOS ANGELES - (AP) A federal judge on Friday approved a $624 million settlement in a lawsuit brought by several New York public pension funds against fallen mortgage giant Countrywide Financial Corp. The settlement, a version of which was had been originally hammered out last year, also calls for KPMG...

Merrill Lynch/Bank of America Subprime-Related 'Double Derivative' Lawsuits Dismissed

In a March 29, 2011 order ( here ), Southern District of New York Judge Jed Rakoff granted the defendants' motions to dismiss a pair of subprime-related derivative lawsuits that had been brought against certain directors and officers of Merrill Lynch. Because the plaintiffs -- former shareholders...

California Appeals Court Reverses Countrywide Lawsuit Dismissal

LOS ANGELES - (AP) An appeals court has overturned the dismissal of a class-action lawsuit brought by investors against mortgage giant Countrywide Financial Corp. The move by a panel of the California 2nd District Court of Appeal reverses the decision by a Superior Court judge in Los Angeles last year...

Court Approves Bank Of America's $410 Million Overdraft Settlement

A Florida court has given preliminary approval to Bank of America Corp.'s $410 million settlement of a federal lawsuit accusing the bank of charging excessive overdraft fees. The Charlotte, N.C. bank will place $410 million in an escrow account that will be divided among 1 million customers who were...

Bank Of America To Set Aside $14 Billion To Settle RMBS Claims

CHARLOTTE, N.C. - (Mealey's) Bank of America Corp. will pay $8.5 billion to settle claims regarding "nearly all of the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure, representing 530 trusts with original principal balance of $424 billion...

Borrowers Sue Over Apparent Loan Modification Mishaps

LOS ANGELES - (AP) It seemed Maria Campusano's financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month. She soon learned that her troubles had just begun. Weeks after making her first payment under the new...

Bank Of America Hit With New Countrywide Lawsuit

NEW YORK - (AP) Bank of America Corp. is facing a new lawsuit filed by a group of shareholders of mortgage giant Countrywide Financial Corp. which the bank bought in 2008. The group of investors, which include BlackRock funds, T. Rowe Price Group Inc., TIAA-CREF and several pension funds. . . . Full...

Renewed Dismissal Motions In Bank of America/Merrill Lynch Litigation Denied In Part, Granted In Part

The facts and circumstances surrounding Bank of America's credit crisis-induced acquisition of Merrill Lynch remain among the highest profile and most controversial events during the global financial crisis. In a July 29, 2011 opinion ( here ), Southern District of New York Judge Kevin Castel granted...

AIG Sues Bank Of America For $10 Billion Over Mortgages

NEW YORK - (AP) More trouble piled up for Bank of America Corp. on Monday, as American International Group Inc. sued it for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued. The suit comes on top of similar suits, which together...

Allstate Sues Goldman Sachs Over Toxic Investments

(AP) Allstate Corp. is suing Goldman Sachs Group Inc. claiming the broker fraudulently sold it more than $123 million in mortgage-backed securities in 2006 and 2007, before the housing market collapse sent the investments' value plunging. The insurer claims in a lawsuit filed in New York that the...

Judge Approves $410 Million Settlement In Checking Account Overdraft MDL

MIAMI - (Mealey's) A federal judge in Florida who is overseeing a multidistrict litigation against a number of financial institutions for allegedly engaging in an illegal scheme to resequence checking account transactions in an effort to maximize returns on overdraft fees granted final approval of...

Federal Government, State AGs Reach $25 Billion Agreement With Banks Over Foreclosures

WASHINGTON, D.C. - (Mealey's) The U.S. Department of Justice (DOJ) announced Feb. 9 that the federal government, attorneys general from 49 states and five national banks have reached a $25 billion settlement to resolve issues stemming from the lenders' allegedly fraudulent foreclosure practices...

Dewey & LeBoeuf Files For Chapter 11 Bankruptcy

NEW YORK - (Mealey's) The law firm of Dewey & LeBoeuf filed for Chapter 11 bankruptcy on May 28 in New York, listing between $100 million and $500 million in liabilities ( In re: Dewey & LeBoeuf , No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). ( Petition. Document #80-120606-030C .) ...

Williams Mullen - McCravy v. Metropolitan Life Insurance Co.: Recognizing A Broader Scope for ERISA's Equitable Remedies

By Mark S. Thomas and Robert W. Shaw The Fourth Circuit has reversed an earlier position and now recognizes a broader scope for equitable remedies available to ERISA plaintiffs following the U. S. Supreme Court's decision in CIGNA Corp. v. Amara , 131 S. Ct. 1866 (2011) [ enhanced version available...

Bank Of America To Pay $2.43 Billion To Settle Securities Class Action Lawsuit

NEW YORK - In what is being called the largest settlement of a credit-crisis-related securities class action lawsuit, Bank of America Corp. (BoA) has agreed to a $2.43 billion settlement on claims that it and certain of its executive officers and directors misrepresented the company's business and...

$2.43 Billion BofA/ Merrill Lynch Merger Results In Largest Credit-Crisis Class Action Settlement

In what is by far the largest settlement of a credit crisis-related securities class action lawsuit, Bank of America has agreed to pay $2.43 billion to settle the suit filed against the company and certain of its directors and officers in connection with the bank's financial crisis-driven acquisition...

U.S. Government Hits Bank Of America With $1 Billion Lawsuit Over Lending Program

NEW YORK - (Mealey's) The U.S. government on Oct. 24 filed a $1 billion lawsuit against Bank of America Corp., as successor for Countrywide Financial Corp., alleging that Countrywide violated provisions of the False Claims Act by engaging in a scheme to defraud Fannie Mae and Freddie Mac in connection...

Final Approval Of $2.4Billion Settlement Granted In Bank Of America Securities Suit

NEW YORK - (Mealey's) A federal judge in New York on April 5 granted final approval of a $2.4 billion settlement between shareholders and Bank of America Corp. (BoA) to settle claims that it and certain of its executive officers and directors misrepresented the company's business and financial...

Bank of America To Pay $1.7 Billion To Settle Mortgage-Backed Securities Claims

NEW YORK - (Mealey's) Bank of America Corp. (BoA) will pay nearly $1.7 billion to MBIA Inc. and certain of its subsidiaries to settle claims in New York State court that BoA misrepresented the investment quality of and risk associated with certain mortgage-backed securities (MBS) it sold to MBIA...