MANHATTAN (CN) - Shareholders sued Bank of America and the CEO and CFO of Merrill Lynch, claiming Merrill Lynch misrepresented its financial position when it bought the bank in a deal in which BofA shareholders got 0.8595 shares of Merrill Lynch for each share of the bank. The class claims Merrill Lynch hid its $15.3 billion loss during the final quarter of 2008, though the vote on the merger came more than two-thirds of the way into that financial quarter.
The class claims they suffered "significant financial damages as a result of the materially false and misleading Proxy Statement and the omissions from that Proxy Statement." They also sued Merrill Lynch CEO and Chairman of the Board John Thain and its CFO Nelson Chai.
The class is represented in Federal Court by Lester Levy with Wolf Popper.
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