The $150 million settlement proposed by Bank of America Corp. to the U.S. Securities and Exchange Commission at atone for the purchase of Merrill Lynch & Co. will be decided upon by February 19 according to a Federal Judge.
A $33 million settlement was already rejected by a judge in September. Should it happen again, case will go to trial, presently set for early March.
The judge has expressed concern regarding the bank’s intent with the nondiscloure of information to their investors. If the settlement is agreed upon, the $150 million would go only to shareholders who affected by the deal.
The punishment raises concerns with the judge who doesn’t know why shareholders should pay the price of the deal for other shareholders or whether some deeper punishment should be administered.
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