BERKELEY, Calif., Oct. 12, 2011 /PRNewswire/ -- Hagens Berman today reminded investors that less than six weeks remain before the Nov. 22, 2011, lead plaintiff deadline in a case against Bank of America (NYSE: BAC) ("BAC") alleging that the bank misled investors by failing to disclose a $10 billion lawsuit threat from American International Group (NYSE: AIG) ("AIG") to investors.
Hagens Berman is continuing to advance its investigation of the bank. According to the filed lawsuit, BAC, Merrill Lynch & Co. and Countrywide Financial sold $28 billion in mortgage-backed securities to AIG. In January 2011, after analyzing data from hundreds of thousands of loans, AIG reportedly informed the bank that it felt the risk of the securities had been misrepresented and was prepared to sue the banking giant for more than $10 billion.
Following months of reported negotiations, AIG filed suit against BAC on Aug. 8, 2011. BAC shares fell sharply, losing 20 percent of their value. Hagens Berman's investigation centers around claims that BAC failed to fully disclose the risks of a pending legal battle with AIG.
Investors who purchased Bank of America common stock during the class period, from Feb. 25, 2011, to Aug. 5, 2011, are encouraged to contact Partner Reed R. Kathrein, who is leading Hagens Berman's investigation. The deadline to move the court for lead plaintiff is Nov. 22, 2011.
Individuals with direct non-public information that may help advance the investigation are also encouraged to contact the firm.
The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The National Law Journal has rated Hagens Berman as one of the top plaintiffs' firms in the country five times. More information about the firm is available at www.hbsslaw.com, and the firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or [email protected]
SOURCE Hagens Berman