B of A Sued Over Merrill Lynch Purchase

Bank of America Corp., the largest U.S. lender by assets, was sued last week by investors who claim they were misled in a deal to buy Merrill Lynch & Co., the New York Times reported.

Shareholders allege Bank of America Chief Executive Officer Kenneth D. Lewis, Chief Financial Officer Joe L. Price and former Merrill CEO John Thain deceived investors by issuing false and misleading statements about Merrill’s financial health, the Times reported.

The investors assert that the defendants “concealed BofA’s failure to engage in proper due diligence in determining the fairness of its proposed merger with Merrill Lynch,” the Times reported, citing court documents. The $33 billion stock-swap buyout was completed last month.