NEW YORK (Reuters) – Bank of America Corp has won the dismissalof an unusual lawsuit by shareholders accusing it of concealing a$10 billion fraud case brought by American International GroupInc.
|In a decision made public on Monday, U.S. District Judge JohnKoeltl in Manhattan said the second-largest U.S. bank was notrequired to disclose the alleged imminence of the AIG lawsuit, orthe scope of potential losses.
|He said this was because the news was not materially differentfrom previously disclosed information, the bank made no incompleteor inaccurate statements, and there was no duty to disclose theinformation sought.
|AIG sued Bank of America on Aug. 8, 2011, allegingmisrepresentations about the quality of more than $28 billion ofmortgage-backed securities it bought from the bank and itsCountrywide and Merrill Lynch units. Bank of America shares fell20.3 percent on the day that case was filed.
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