N.Y.'s Cuomo alleges bank misled investors about Merrill Lynch deal
NEW YORK - New York's attorney general charged Bank of America Corp , former Chief Executive Kenneth Lewis and former Chief Financial Officer Joe Price with fraud for allegedly misleading shareholders about the bank's acquisition of Merrill Lynch & Co.
Separately, the U.S. Securities and Exchange Commission said the largest U.S. bank agreed to pay a $150 million civil fine and strengthen disclosure and corporate governance to settle its two lawsuits alleging poor disclosure of Merrill's losses and bonus payouts. The accord requires court approval.
Invoking a powerful state law used to combat securities fraud, New York Attorney General Andrew Cuomo filed a civil lawsuit on Thursday accusing Bank of America, Lewis and Price of intentionally failing to disclose massive losses at Merrill prior to a December 5 shareholder vote on the merger.
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