Settlement Alert: Bank of America

Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al., Civil Action No. 11-00733-WHP (S.D.N.Y.)

Barrack, Rodos & Bacine is pleased to announce that the Court has granted final approval of a $335 million settlement of Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al., and has directed distribution of settlement funds in this action in which the firm serves as a Lead Counsel on behalf of the Court-appointed Lead Plaintiff, the Pennsylvania Public School Employees’ Retirement System (“PSERS”). PSERS manages the pension fund for present and retired school teachers and other public school employees in the Commonwealth of Pennsylvania.

Background

Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al. is a securities class action lawsuit filed in the United States District Court for the Southern District of New York before the Honorable William H. Pauley III, alleging that the defendants violated the federal securities law by making false and misleading statements regarding, among other things, the exposure of Bank of America Corporation (“BoA”) to demands for repurchase mortgage-backed securities and other loans. A copy of the Amended Consolidated Class Action Complaint in this action, filed on August 13, 2012 by Lead Counsel on behalf of the Lead Plaintiff, is available here. If the settlement is given final approval by the Court, the settlement will resolve all claims on behalf of a Class consisting of all persons (a) who purchased BoA common stock or Common Equivalent Securities on a U.S. public exchange during the period from February 27, 2009 through October 19, 2010 (“Class Period”) or (b) who purchased or acquired certain BoA common stock or Common Equivalent Securities in or traceable to a public offering during the Class Period. After more than six years of intensive litigation, including the depositions of more than 30 witnesses and the production and review of more than 8 million pages of documents, the parties agreed, subject to approval by the Court, to settle the case for $335 million in cash, which was deposited with the Court into an account on behalf of the Class. The settlement was the result of lengthy negotiations over 10 months, assisted by mediator Layn Phillips, a former U.S. District Court Judge. The settlement resolves all claims of Class members against all Defendants (as defined in the Long Form Notice). A copy of the Stipulation and Agreement of Settlement, dated March 11, 2016, is available here and the June 13, 2016, amendment to the Stipulation is available here. On December 30, 2018, the Court issued an order granting final approval of the settlement and entering final judgment. Click here for a copy of the Court’s final approval order.

On October 12, 2018, the Court issued an order ruling on the recommendations of Heffler Claims Group, the Claims Administrator, for disposition of the claims submitted pursuant to the settlement.  Click here for a copy of the Court's October 2018 order.  On November 9, 2018, the Court issued an order authorizing the partial distribution of the settlement proceeds to eligible claimants.  Click here for a copy of the Court's November 2018 order.

On January 24, 2019, the Court issued an order (i) denying the motion of a class member seeking to file an untimely appeal of the October 2018 order and (ii) directing the Claims Administrator to commence the partial distribution of settlement proceeds forthwith.  Click here for a copy of the Court's January 2019 order.

To find out more information about the Action and the Settlement:

You may also obtain copies of the important documents in this litigation from http://www.BoASecuritiesSettlement.com, the website maintained by the Bank of America Securities Settlement Claims Administrator, Heffler Claims Group.  The Claims Administrator can also be reached by mail at Heffler Claims Group, Claims Administrator, P.O. Box 360, Philadelphia, PA 19105; or by calling the following toll-free number maintained by the Claims Administrator: 1-800-644-7835. If you are outside the U.S. and Canada, please call 215-845-4405. or by calling the Claims Administrator’s toll-free number provided above, or by emailing a request to BoASecuritiesSettlement@HefflerClaims.com.