BofA Dodges Merrill Investors' MBS Actions In 2nd. Circ.

Law360, New York (December 4, 2012, 12:14 PM EST) -- The Second Circuit refused Tuesday to revive a pair of derivative actions that sought to force Bank of America Corp. to sue directors who oversaw subsidiary Merrill Lynch's ill-fated investment in subprime mortgages and mortgage-backed securities, agreeing with a lower court that the bank turned down the request in good faith.

A three-judge panel affirmed U.S. District Judge Jed Rakoff’s March 2011 opinion dismissing the suits by investors Nancy Lambrecht and Leonard Sollins. The investors claim BofA’s board wrongly failed to pursue directors at Merrill Lynch...
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