Murray, Frank & Sailer LLP Files Class Action Against Bank of America Corporation

NEW YORK--(BUSINESS WIRE)--Murray, Frank & Sailer LLP has filed a class action complaint in the United States District Court for the Southern District of New York (Case No. 11 Civ. 1280) on behalf of all individuals and institutions who purchased Bank of America Corporation (“BofA” or the “Company”) publicly traded common stock and options during the period between May 9, 2007 and October 19, 2010 (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

The Complaint alleges that throughout the Class Period, BofA engaged in “dollar rolling,” a practice whereby it would move mortgage-backed securities (“MBS”) off its books to another entity, but agree to repurchase the MBS after it reported its quarterly financial statement. Accordingly, BofA classified such transactions as “sales,” when in reality the transactions were a form of secured borrowing. Dollar rolling enabled BofA to conceal from investors the true risks that BofA had incurred as a result of its investments in MBS. On July 9, 2010, it was revealed that BofA dollar rolled $4.5 billion in 1Q 2007, $1.8 billion in 4Q 2007, $10.7 billion in 3Q 2008, and $573 million in 1Q 2009.

The Complaint also alleges that, during the Class Period, BofA also concealed from investors that, in large part due to its July 2008 acquisition of Countrywide Financial Corporation, it failed to maintain adequate internal controls regarding the processing of foreclosures, because (1) it did not possess adequate paperwork for many of the loans that it purchased or acquired, which could delay or prevent eventual foreclosures; and (2) it did not have adequate personnel to process its foreclosed loans, so it resorted to the improper and illegal practice of “robo-signing.”

On October 8, 2010, BofA announced that it was indefinitely halting foreclosures in all 50 states and was reviewing over 100,000 loans. On October 13, 2010, attorneys general for all 50 states announced that they would conduct a joint investigation regarding robo-signing. On October 19, 2010, BofA issued a press release, announcing its third-quarter 2010 financial results, and reporting a net loss of $7.3 billion. The press release also revealed that net income on a fully taxable-equivalent basis was down 4% from the previous quarter, presumably due in significant part to the problems that BofA was having in effectuating foreclosures. Between October 8 and October 19, BofA’s stock dropped from $13.31 to $11.80, a drop of 11.3%.

If you purchased common stock and options during the period between May 9, 2007 and October 19, 2010, you may move the Court, not later than April 4, 2011, to serve as Lead Plaintiff for the Class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased BofA common stock and/or options and wish to discuss this litigation, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Gregory Linkh at [phone], [phone], or via email at [e-mail].