On November 15th, 2007 American Tissue Inc. [ATI] filed a lawsuit against LaSalle Bank, ABN Amro Holding (ABN) and Bank of America (NYSE:BAC), seeking $1.1 Billion dollars in damages for loss of equity due to alleged gross negligence, mismanagement and fraudulent acts of La Salle Bank which contributed to the bankruptcy and liquidation of ATI.
Bank of America is caught in the middle of this lawsuit, having recently announced a purchase of La Salle Bank from it’s parent company, Amro Holding for $21 Billion Dollars.
This could prove to be a large payout or settlement against Bank of America following a recent purchase that will most likely lower BOA’s EPS to begin with. Keep an eye on BOA news in the next few weeks, we will keep you posted.
The original press release from American Tissue, Inc. is as follows:
Central Islip, New York
November 15, 2007
A federal law suit seeking $1.1 Billion Dollars in damages against LASALLE BANK, N.A., ABN AMRO HOLDING, N.V.; and BANK of AMERICA, was filed today in the U.S. District Court for Eastern District of N.Y. by the shareholders of American Tissue Inc. (“ATI”) for loss of equity due to the alleged gross negligence, mismanagement and fraudulent acts of LASALLE BANK, N.A., which contributed to the bankruptcy and subsequent liquidation of A.T.I.
A.T.I. filed for bankruptcy in September 2001 and its then President and C.E.O., MEHDI GABAYZADEH, was later indicted and convicted in Federal Court of bank fraud and is now serving a fifteen year sentence.
From 1981, A.T.I. grew to become the fourth largest tissue manufacturing company in North America by 2001 with 31 manufacturing and processing facilities throughout the U.S. and Mexico and employing some 5,000 workers in 15 states
This law suit comes on the heels of an announcement last month that Bank of America would purchase LASALLE BANK, N.A. from its parent company, ABN AMRO HOLDING, N.V. for $21 BILLION DOLLARS.
For further information, please contact: Mr. John Gabayzadeh at 516 639 8333 or email at email@example.com