Bank of America's Merrill Lynch Suit Approved, Ex-Broker Told To Pay $11m

Bank Of America Building

Bank of America has won a federal judge's approval for a $2.43bn settlement with investors who said the lender hid crucial information when it bought Merrill Lynch.

Reuters reports that the accord, among the largest investor settlements stemming from the recent global financial crisis, was approved by U.S. District Judge Kevin Castel in Manhattan.

Castel called the settlement 'fair, reasonable and adequate', and said it culminated an 'extraordinarily hard-fought litigation'.

In the meantime, the news agency also reports that U.S. securities arbitrators ordered a former employee of Merrill Lynch, Deutsche Bank and Oppenheimer & Co to pay nearly $11m to an investor who alleged the broker misrepresented securities and made excessive trades.

The investor's case against former broker Karl Hahn stems from transactions involving covered calls, a variable annuity and other investments, according to a ruling by a Financial Industry Regulatory Authority (FINRA) arbitration panel.

Judge approves BofA $2.43 billion settlement over Merrill

Ex-broker for Merrill, Deutsche Bank told to pay investor $11 mln

image: © lewisha1990

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