Bank of America has paid Tutor Perini Corp $37 million to resolve a lawsuit claiming the bank defrauded the construction company by selling it millions of dollars of auction-rate securities it knew were on the brink of collapse.
Reuters reports that the settlement, disclosed by Tutor Perini in a filing with the U.S. Securities and Exchange Commission on Tuesday, resolves a lawsuit the Los Angeles-based company filed against the bank in 2011 in federal court in Boston.
The deal came after a federal appeals court in November revived the lawsuit, holding that a lower court judge erred in dismissing federal and Massachusetts state securities fraud claims against the second-largest U.S. bank.
A jury trial in the lawsuit had been scheduled for June 19 but on May 23 the parties informed the court that they had reached a settlement. Terms were not disclosed at that time.
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