Yesterday we updated you on the ongoing case filed by the SEC against Back of America stemming from the merger between Bank of America and Merril Lynch. The case stems from the failure of BofA to notify stockholders of bonuses paid to Merril executives shortly before the merger and the courts rejection of the $33 million dollar settlement.
Yesterday the court rejected the SEC’s request to amend the complaint to add an additional count but left open the option to file it separately, and today the SEC did just that. The SEC is alleging that Bank of America should have disclosed Merril’s $4.5 billion loss in October, 2008, and additional losses in November to its shareholders prior to voting on the merger.
The trial for the original complaint is set to begin in March, and the second trial may start as soon as this summer.