Pile-On: Ohio Sues BofA Over Merrill Merger

sleeper hold wrestling

Bank of America (BAC) already has Congress, the SEC, New York’s Attorney General, the FBI and Dept. of Justice on its back about the Merrill merger.

Now, taking the lead is Ohio’s Attorney General, who filed an amended class action complaint today.

AP: Ohio has taken the lead role in an aggressive securities lawsuit alleging that Bank of America Corp. concealed billions of dollars in losses and bonuses paid during the bank’s merger with Merrill Lynch.

Ohio Attorney General Richard Cordray is the top lawyer representing the state’s two largest public pension systems and other investor interests worldwide. He said Monday the action is one of the largest securities lawsuits in history.

The lawsuit says executives at both companies failed to disclose billions in losses and bonuses at Merrill Lynch to shareholders before a vote on the merger in 2008.

It seeks unspecified damages to be paid by executives and the bank to pension shareholders.

“They were concealing billions of dollars in losses with one hand and clearing the way for extravagant bonus payments with the other,” said Attorney General Cordray in a statement.  “This case gives the public pension funds and other shareholders a chance to stand up against Wall Street.”

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