Investors Sue BofA Over Foreclosure Foul-Ups

Law360, New York (February 3, 2011, 4:40 PM EST) -- A union benefit plan has filed a putative class action against Bank of America Corp., charging the megabank hid its risky mortgage and foreclosure practices from investors in the leadup to foreclosure scandals that rocked the industry in 2010.

BofA’s loose mortgage policies in early 2010 allowed its stock to fly high, topping out at $19.48 per share in April, but its fast-and-loose practices caused the stock to drop 48 percent by October, attorneys for the Pipefitters Local No. 636 Defined Benefit Plan said in a...
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