VOL. 125 | NO. 171 | Thursday, September 02, 2010
Some BofA Shareholders Can Apply to Tap $150M Fund
DANIEL WAGNER | AP Business Writer
WASHINGTON (AP) – Investors who lost money when Bank of America Corp. bought Merrill Lynch without disclosing Merrill's problems can start applying to tap a $150 million compensation fund.
A federal judge Wednesday approved a detailed plan for distributing the money. The fund was set up as part of a settlement between the bank and the Securities and Exchange Commission.
The SEC charged that Bank of America withheld details that might have led shareholders to reject the Merrill deal. The bank didn't mention Merrill's plan to award $5.8 billion in bonuses after losing $27.6 billion that year.
Bank of America argued that the information was not important enough to warrant disclosure.
Shareholders as of Jan. 16, 2009, can apply for the money before Nov. 12.
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