Spread Of Rakoff Fever Threatens Private Settlements

Law360, New York (January 15, 2013, 8:00 PM EST) -- A New York federal judge took a page from U.S. District Judge Jed Rakoff by pressuring Bank of America Corp. executives Friday to triple a $20 million shareholder settlement, suggesting judicial scrutiny of securities deals is spreading beyond government-brokered pacts to private litigation.

The latest power play came after U.S. District Judge Kevin Castel in December overruled objections by some BofA investors and granted preliminary approval to the $20 million pact. The suit alleges BofA overpaid in 2008 when it purchased Merrill Lynch & Co. for...
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