Lawyers retained by two Plaintiffs have reportedly settled claims for alleged Breaches of Fiduciary Duties by "the directors of Bank of America over its purchase of Merrill Lynch". The settlement requires Court approval in a Federal class action lawsuit pending in the United States District Court for the Southern District of New York (Manhattan). Gretchen Morgenson, "Bank of America Accord in Lawsuit is Challenged" p. B1, col. 5 (New York Times Nat'l ed., "Business Day" Section, Saturday, April 21, 2012).
The tentative settlement has been challenged in the Federal Court by other Plaintiffs who filed their lawsuit in Delaware apparently against the same Bank of America Defendants, and also on account of BOA's purchase of Merrill Lynch. The Delaware Plaintiffs' claims would arguably be terminated if the New York settlement is approved by the Federal Court. Id.
The New York Plaintiffs are reportedly willing to settle their $5 Billion Breach of Fiduciary Duties claims for $20 Million. Id.
The Delaware Plaintiffs' challenge to the tentative New York settlement is based on grounds that "the settlement [is] grossly inadequate and the result of collusion". Id.
To put it another way, the Delaware Plaintiffs apparently contend that the New York Plaintiffs are acting in Bad Faith with the New York Defendants.
Time -- and a Federal Judge in New York -- will tell.
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