On September 1, 2010, the US Securities and Exchange Commission (SEC) announced that a judge in the US District Court for the Southern District of New York had approved a $150 million fund set up by Bank of America (BOA) in accordance with a settlement agreement reached earlier that year. The SEC had charged BOA with misleading investors regarding billions of dollars paid to Merrill Lynch executives during the acquisition of the firm. The fund was used for payouts to shareholders who owned BOA stock as of January 16, 2009. The district court twice rejected a proposed settlement between the SEC and BOA for $33 million, which did not admit any fault or directly penalize any corporate executives, calling the settlement unfair to the shareholders.
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