BofA Shakes Fraud Suit Over Subprime Mortgage Standards

Law360, Los Angeles (December 11, 2013, 8:34 PM EST) -- A New York federal judge on Wednesday threw out a fraud suit brought by a Florida investor who accused Bank of America Corp. of material misstatements and omissions concerning its subprime mortgage standards, finding the investor hadn't properly opted out of a related class action.

Salomon Melgen and his investment entity SFM Holdings Ltd. sued BofA and former CEO Kenneth D. Lewis in 2012, bringing claims against the defendants relating to BofA’s mortgage practice and acquisitions. But the defendants moved to dismiss the suit in May,...
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Case Information

Case Title

IN RE: Bank of America Corp. Securities, Derivative and Employee Retirement Income Security Act (ERISA) Litigation


Case Number

1:09-md-02058

Court

New York Southern

Nature of Suit

Stockholders Suits

Judge

P. Kevin Castel

Date Filed

June 11, 2009


Case Title

Melgen et al v. Bank of America Corporation et al


Case Number

1:12-cv-05210

Court

New York Southern

Nature of Suit

Fraud or Truth-In-Lending

Judge

P. Kevin Castel

Date Filed

July 5, 2012

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