New York drops effort to win damages from BofA over Merrill

|About: Bank of America Corporation (BAC)|By:, SA News Editor

New York Attorney General Eric Schneiderman won't seek damages from Bank of America (BAC) over its $18.5B acquisition of Merrill Lynch during the financial crisis in 2009.

However, Schneiderman will still pursue the lawsuit and seek an injunction that would ban former BofA CEO Kenneth Lewis and ex-CFO Joe Price from the securities industry and from being directors of public companies.

Schneiderman has accused BofA of misleading shareholders over the scale of losses at Merrill and bonus payouts in order to win authorization for the deal, and of manipulating the federal government to provide bailout loans.

In 2012, BofA agreed to pay stockholders $2.43B to settle a lawsuit over losses they made because of the Merrill Lynch transaction.