BofA reaches $2.43 billion deal with investors over Merrill

Amid the flurry of banking deals that accompanied the financial crisis, Bank of America’s decision to buy Merrill Lynch at the peak of the crisis proved particularly tough for shareholders to stomach. When the extent of the mortgage-related rot on Merrill’s books emerged after the deal, shareholders sued, alleging that executives at Bank of America had been less-than-forthcoming about the extent of the problems. In announcing the settlement of the class action lawsuit Sep. 28, Bank of America continued to deny the allegations, saying that it had agreed to the payout to remove uncertainty and limit litigation costs. The $2.43 billion agreement is the largest settlement of a shareholder suit stemming from the financial crisis.