LOS ANGELES/SAN FRANCISCO, March 23 (Reuters) - The first and third largest U.S. pension funds plan to lead a class-action suit against Bank of America, accusing the lender of mis-stating or omitting crucial information about the financial health of acquired investment bank Merrill Lynch.
The California Public Employees' Retirement System (CalPERS) and California State Teachers Retirement System (CalSTRS) said on Monday they were trying to protect the retirement security of their over 2 million members.
On Monday, they filed a joint motion to the District Court of the Southern District of New York to be designated lead plaintiff in class actions against Bank of America stemming from its merger with Merrill Lynch.
Plaintiffs lawyer Coughlin Stoia filed the suit in mid-February.
'Despite these challenging economic times, we can't give corporations a pass on their obligations to shareholders,' said Jack Ehnes, CalSTRS chief executive officer.
'By moving to be appointed lead plaintiffs, we're acting to supplement government enforcement of securities laws at a critical time for our nation's economy. We've taken this step to hold the board and its management responsible to their owners.'
In a joint statement, CalPERS and CalSTRS said shareholders lacked complete information about the merger before they approved the tie-up.
Anger has mounted against Bank of America, which agreed last September to buy struggling Merrill at a 60 percent premium after fewer than 48 hours of discussions. Investors have accused the lender of overpaying, and failing to timely disclose the extent of the target bank's losses once they had become known.
(Reporting by Edwin Chan) Keywords: BANKOFAMERICA/ (eddie.chan@thomsonreuters.com; +1 213 955 6750; Reuters Messaging: eddie.chan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The California Public Employees' Retirement System (CalPERS) and California State Teachers Retirement System (CalSTRS) said on Monday they were trying to protect the retirement security of their over 2 million members.
On Monday, they filed a joint motion to the District Court of the Southern District of New York to be designated lead plaintiff in class actions against Bank of America stemming from its merger with Merrill Lynch.
Plaintiffs lawyer Coughlin Stoia filed the suit in mid-February.
'Despite these challenging economic times, we can't give corporations a pass on their obligations to shareholders,' said Jack Ehnes, CalSTRS chief executive officer.
'By moving to be appointed lead plaintiffs, we're acting to supplement government enforcement of securities laws at a critical time for our nation's economy. We've taken this step to hold the board and its management responsible to their owners.'
In a joint statement, CalPERS and CalSTRS said shareholders lacked complete information about the merger before they approved the tie-up.
Anger has mounted against Bank of America, which agreed last September to buy struggling Merrill at a 60 percent premium after fewer than 48 hours of discussions. Investors have accused the lender of overpaying, and failing to timely disclose the extent of the target bank's losses once they had become known.
(Reporting by Edwin Chan) Keywords: BANKOFAMERICA/ (eddie.chan@thomsonreuters.com; +1 213 955 6750; Reuters Messaging: eddie.chan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.