Hagens Berman Announces Securities
Investigation of Bank of America
August 30, 2011 10:19 PM Eastern Daylight Time
BERKELEY, Calif.--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP today announced that it
is investigating concerns by hedge funds and institutional investors who believe Bank of America Corp. (NYSE:
BAC) may have failed to disclose to investors the risk associated with a $10 billion lawsuit threat from American
International Group (“AIG”) (NYSE: AIG).
According to reports, AIG invested in billions of dollars of mortgage-backed securities sold by Bank of America
prior to the housing collapse. 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.
Hagens Berman is investigating whether Bank of America failed to disclose fully the risks of its dispute with AIG.
According to media reports, the bank did not mention the threat of the lawsuit in its quarterly regulatory filing, which
was issued four days before AIG’s lawsuit was filed.
“We believe that Bank of America knew, or should have known, that its dispute with AIG represented a significant
risk for investors,” said Partner Reed R. Kathrein, who is leading the firm’s investigation from its San Francisco
office. “If the company did indeed fail to disclose such a risk, it could represent a major breach of the securities
On August 8, 2011, after several months of negotiations, AIG filed its lawsuit. Bank of America shares fell sharply,
losing 20 percent of their value.
Institutional investors and others who purchased Bank of America common stock between May 5, 2011 and August
8, 2011, and who have losses exceeding $1,000,000 as a result of BAC’s stock drop on August 8, 2011, are
encouraged to contact the firm. Reed R. Kathrein can be reached at (206) 623-7292 or via email at
CCME@hbsslaw.com. Investors can also learn more about this investigation at www.hbsslaw.com/BACsecurities.
Persons with direct knowledge concerning BAC and AIG’s negotiations concerning AIG’s claims, prior to the
lawsuit being disclosed, are also invited to contact the firm. Under the new Dodd-Frank Financial Reform bill, those
with information on violations of securities laws may be entitled to a financial reward.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in ten cities.
Founded in 1993, the firm’s mission is to represent plaintiffs in class actions and multi-party, large-scale litigation that
has the potential to protect the rights of investors, consumers, workers and the environment. The National Law
Journal has rated Hagens Berman as one of the top ten plaintiffs’ firms in the country four out of the last five years.
More information about the firm is available at www.hbsslaw.com and the firm’s securities law blog is at
Firmani + Associates Inc.
Mark Firmani, 206-443-9357
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