NEW YORK (Reuters) – Bank of America Corp is urging a federal court to throw out an unusual lawsuit by its shareholders accusing it of concealing a $10 billion fraud case brought by American International Group Inc.
The bank argued in papers filed late Tuesday in Manhattan federal court that shareholders should have known the insurer might sue, based on published reports several months earlier.
Bank of America also contended that shareholders may not have been harmed by the insurer's lawsuit.
AIG sued Bank of America on Aug. 8, 2011, alleging misrepresentations about the quality of more than $28 billion of mortgage-backed securities it bought from the bank and its Countrywide and Merrill Lynch units. Bank of America shares fell 20.3 percent on the day the case was filed.
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