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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