BofA Accused Of Hiding $10B AIG Liability From Investors

Law360, New York (September 23, 2011, 8:17 PM EDT) -- A putative class of investors accused Bank of America Corp. on Friday of failing to disclose a potential $10 billion liability related to mortgage-backed securities its subsidiaries sold to doomed investment firm American International Group Inc., according to the plaintiffs' counsel.

Robbins Geller Rudman & Dowd LLP said it would seek damages suffered by investors during a one-day stock price drop of 20 percent on Aug. 8 — the result, the firm says, of a suit AIG filed that day seeking to reclaim losses from $28...
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