A judge has approved a $2.4 billion settlement with a group of institutional investors who sued Bank of America in connection with its 2008 acquisition of Merrill Lynch. The lawsuit alleged that Bank of America failed to disclose to investors the risks involved in the acquisition and made false and misleading statements about Merrill Lynch’s financial health. The lawsuit also alleged that Bank of America’s value fell sharply because of toxic assets that became part of the bank’s business after the acquisition.
According to the New York Times, this marks the largest securities class-action lawsuit settlement from the financial crisis. The parties reached the settlement back in September, just on the eve of trial.