Texas Teacher Retirement System Seeks Control Of Bank Of America Lawsuit
March 26, 2009
The Teacher Retirement System (TRS) of Texas has asked to be the lead plaintiff in a federal class-action lawsuit against Bank of America Corp.
Plaintiffs allege in the lawsuit, filed in January, that Bank of America made “untrue statements” and withheld crucial information from shareholders during its acquisition of Merrill Lynch & Co. Inc. last year.
The lawsuit marks the first time that the Texas teachers fund has ever sought lead status, which gives the fund managing control of the case including choosing which attorneys actively oversee the case.
Four other funds, including national public-sector funds from the Netherlands and Sweden and two Ohio employee funds, have asked that the Texas teachers fund be named lead plaintiff.
TRS Spokesman Howard Goldman said that the aim is to improve corporate governance at Bank of America, but that the “TRS hopes to obtain the best financial recovery possible for the harmed investors.”
The California Public Employees Retirement System and the California State Teachers Retirement System also filed for lead plaintiff status in the suit which will be tried in the U.S. District Court for the Southern District of New York.
Bank of America shareholders have filed numerous lawsuits against the company over its Merrill Lynch acquisition.
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