Tuesday, February 23, 2010

AG Cordray comments on most recent ruling in a U.S. District Court

From John Curry, February 23, 2010
"Today’s decision validates and reinforces the core allegations of our lawsuit against Bank of America," said Cordray.
Cordray: Ohio Encouraged by Judge’s Ruling Against Bank of America
News Release from Ohio Attorney General's Office
(COLUMBUS, Ohio) — Ohio Attorney General Richard Cordray said today that he is encouraged by a federal court’s order approving a $150 million settlement between Bank of America and the United States Securities and Exchange Commission.
Last September, Attorney General Cordray, in concert with five public pension funds, filed a shareholder class action lawsuit alleging securities violations based on many of the same alleged facts at issue in this enforcement action brought by the SEC. The suit filed by Cordray and other public pension funds is pending before a different judge in the U.S. District Court for the Southern District of New York.
“We welcome Judge Rakoff’s ruling today, which recognizes that Bank of America failed to adequately disclose to its shareholders material information related to the Bank’s acquisition of Merrill Lynch. Today’s decision validates and reinforces the core allegations of our lawsuit against Bank of America,” said Cordray.
Judge Rakoff was limited to hearing the facts before him as alleged by the SEC and indicated in today's ruling that even a $150 million penalty was “paltry” and “half-baked justice” given Bank of America’s substantial wrongdoing.
“Although the SEC did not, we sued not only Bank of America, but also top executives who we believe were personally engaged in violations of the securities laws. We will continue to aggressively pursue claims against Bank of America and other individual defendants on behalf of shareholders. We will not rest until Bank of America is held accountable for its wrongs, and until the rights of investors and retirees are vindicated,” Cordray added.
The lead plaintiffs group for the class action suit filed in September includes the State Teachers Retirement System of Ohio, the Ohio Public Employees Retirement System, and three other public pension funds.
For more information about the shareholder class action suit, please visit www.OhioAttorneyGeneral.gov/SecuritiesLitigationBriefing.
This lawsuit is one aspect of Attorney General Cordray’s aggressive pursuit to hold accountable those Wall Street institutions and executives who have violated laws and harmed Ohio investors, workers, retirees, and families. In addition to this case, Cordray has managed seven other such lawsuits, including those against AIG, Fannie Mae, Freddie Mac, Marsh, Merrill Lynch, the Ratings Agencies, and United Health Care. More than $2 billion has been recovered to-date in these suits.
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