Merrill Lynch has agreed to create a $12 million fund to settle a class action lawsuit alleging it didn’t properly pay overtime to employees who provide support services for brokers. The court for the Southern District of New York must still approve the settlement, which was announced in a filing Friday. Merrill Lynch is the retail brokerage unit of Bank of America Corp.
The lawsuit, which was filed in June 2011, alleged that Merrill Lynch client associates were paid overtime based on an incorrect and low regular rate of pay and that Merrill failed to properly record and account for all overtime hours they worked. Continue reading “Merrill Lynch settles overtime class action”
According to The New York Times, the price being paid by Bank of America for its missteps during the financial crisis rose sharply on Friday as the bank announced a $2.43 billion deal to settle accusations that it misled investors about the acquisition of Merrill Lynch. It is the largest securities class-action lawsuit settlement yet to arise from the financial crisis.
On May 23, 2012, investors filed a federal class action against Facebook, saying the company shared crucial information with preferred investors before the company’s already contentious Initial Public Offering.
Investors suing Bank of America Corp. won class action status for their lawsuit accusing the bank of fraudulently misleading them about the 2008 takeover of Merrill Lynch & Co. and the size of Merrill’s losses and bonus payouts.
The Financial Industry Regulatory Authority Inc. (“FINRA”) and The Charles Schwab Corporation are engaged in a legal fight over whether a brokerage firm can avoid customer class-action claims by forcing all disputes into FINRA arbitration forums.
In early December, 2011, Bank of America Corp. (BAC) reached a $315 million settlement with a group of investors who sued its Merrill Lynch unit claiming they were misled about mortgage-backed securities, according to a court filing.
Bank of America Corp., JPMorgan Chase & Co. and other banks may pay more to resolve claims over their alleged roles in the collapse of a $2.3 trillion mortgage-backed securities market if sophisticated investors are allowed to sue as a group with less savvy ones.