Bloomberg News reports that New York Attorney General Eric Schneiderman is still pursuing the case without the damages claim, Matt Mittenthal, a spokesman for the office, said Friday. The lawsuit also seeks an injunction barring individuals from the securities industry and from serving on public boards.
The state has accused Bank of America of misleading shareholders about losses at Merrill Lynch to win approval of the $18.5bn deal and then manipulating the federal government into contributing bailout funds from the Treasury Department’s Troubled Asset Relief Program to complete it.
The bank has faced regulatory probes, investor lawsuits and criticism from lawmakers over claims it didn’t warn shareholders about spiralling losses at Merrill before they voted to buy the brokerage in January 2009.
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