NEW YORK CITY-State Attorney General Andrew Cuomo on Thursday filed suit against Bank of America and its former CEO Kenneth Lewis and former CFO Joseph Price, charging that the banking giant misled shareholders and federal regulators over its merger with Merrill Lynch. The suit comes as the Securities and Exchange Commission announced a settlement with BofA.

Cuomo’s complaint, filed Thursday in state Supreme Court in Manhattan, charges that BofA hid Merrill’s “staggering losses” that had reached $16.2 billion by the time shareholders voted in December 2008 to approve the merger. Following the shareholders’ approval, BofA’s management then manipulated the federal government by falsely claiming that they would back out of the deal through a clause in the merger agreement unless they received billions of dollars in Troubled Assets Relief Program funds, according to the complaint.

“This was an arrogant scheme hatched by the bank’s top executives who believed they could play by their own set of rules,” Cuomo says in a statement. “In the end, they committed an enormous fraud and American taxpayers ended up paying billions for Bank of America’s misdeeds.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.