NEW YORK (AP) — A recently proposed $20 million settlement of shareholder claims by Bank of America Corp. over its 2009 acquisition of Merrill Lynch is being challenged by a separate group of shareholders as too small.
A federal judge in New York has ordered the Bank of America directors who were sued over the deal to defend the settlement in court on May 4, along with the lead shareholders they settled with.
The court order by U.S. District Judge Kevin Castel came last week in response to a request by lawyers for the second group of shareholders, who have their own, similar lawsuit pending against Bank of America's board in Delaware Chancery Court.
Castel directed the board members and the lead plaintiffs in the New York case — Bank of America shareholders Louisiana Municipal Police Employees Retirement System and Hollywood Police Officers' Retirement — to appear before him to defend the proposed settlement.
Bank of America, which is based in Charlotte, N.C., did not immediately respond to a request for comment Saturday.