Bank of America lost a $141 million lawsuit for defrauding innocent investors. Federal court jurors in Manhattan ruled in favor of investors last Friday.
December 10, 2008, West Palm Beach, FL (JusticeNewsFlash.com)– Bank of America Corp., the largest U.S. consumer bank, lost a $141 million jury verdict last Friday. The lawsuit, filed on behalf of numerous investors, including American International Group Inc., Bank Leumi Le-Israel Ltd., Allstate Corp. and Societe Generale SA, claims Bank of America defrauded investors. The jury awarded $85 million, which after adding interest totals $141 million.
Justice business litigation experts and securities law reporters assert the defrauded investors proved Bank of America Securities internally knew the securities it was selling were significantly worth less than they were marketing. The claims filed in the lawsuit allege Nationsbanc, a unit of Bank of America, underwrote securities issued by a trust created by Heilig-Meyers, once the largest U.S. furniture retailer. Asset-backed securities are secured by assets other than real estate and according to the plaintiffs, Nationsbanc deceived investors by claiming the assets were sound. The securities litigation attorneys argued Nationsbanc provided investors with incomplete loan delinquency figures and failed to disclose a second set of Heilig-Meyers’ books.
JNF business litigation reporters and legal experts in securities law say fraud lawsuits in the financial industry are most likely to increase with the recent U.S. financial fallout. If you have been deceived by unlawful business practices you may be entitled to compensation for you losses and damages. Contacting a business litigation attorney who specializes in white collar fraud civil actions may help you recover.
If you were among the many people who suffered as a result of the deceitful practice of a stockbroker or financial advisor, contact the experienced financial fraud litigation attorney Thomas C. Bradley today for a free consultation.