Reuters - Bank of America pays $37m to resolve auction-rate securities lawsuit

Bank Of America Building

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.

Hit the link below to access the complete Reuters article:

BofA pays Tutor Perini $37 million to resolve fraud lawsuit

U.S. Justice Department opposes Wells Fargo on whistle-blower suit

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News