BofA Sued Over Alleged Mutual-Fund Mishaps

Law360, New York (June 20, 2006, 12:00 AM EDT) -- A group of beneficiaries of fiduciary accounts has filed a class action against Bank of America Corp., alleging that the financial goliath improperly siphoned trust assets into the bank’s own mutual funds as part of a scheme to lower costs and boost profits.

The lawsuit, filed last week in the U.S. District Court for the Eastern District of Missouri, accuses BofA of improperly using assets in its fiduciary accounts to bulk up its family of proprietary mutual funds—the Nations Funds (now named the Columbia Funds)....
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