Boston, MA 04/25/2014 (wallstreetpr) – As per reports by the Wall Street Journal, Bank of America Corp (NYSE:BAC)‘s ex-CFO, Joe Price has agreed to settle one of the last legal battles over Merrill’s acquisition with New York State Attorney General, Eric Schneiderman. As part of the settlement, Price will pay $7.5 million and will not serve in the capacity of a director or officer in a public company for the next 18 months.
Merrill Lynch’s Acquisition
The agreement reached today is the last of a long drawn legal battle by the New York State against Bank of America pertaining to its acquisition of Merrill Lynch during the financial crisis. The case was filed in 2010 accusing the bank that it deceived investors by failing to disclose the mounting losses attached with Merrill Lynch. While Mr. Price did not admit any wrongdoing on his part, his lawyer, Jeffress, said that the deal is made in order to end the adverse impact the litigation on Mr. Price, his family and his career. As per Jeffress, Bank of America Corp (NYSE:BAC) is bearing the costs for Mr. Price, however, the bank refused to make any comment.
Replicates BAC’s Earlier Deal
The settlement is similar to the one reached by Schneiderman last month with the Bank of America and its former CEO Kenneth Lewis. Under which, the bank had accepted to settle $15 million while Lewis agreed to pay $10 million along with a clause to not to serve in a public company for a period of three years.
A look at the history reveals that the bank initially received appreciation for taking over the giant Merill Lynch during 2008, however, the deal turned sour after losses ballooned at Merrill, post completion of the takeover. Since then,Bank of America Corp (NYSE:BAC) has paid out billions of dollars to settle litigation that resulted from its failed decision of Merrill buyout. Mr. Price was occupying the position of CFO in 2008, when the Merrill acquisition took place.
