NY Pension Fund Sues Merrill And Bank Of America

New York has filed two new major securities fraud lawsuits – but they didn’t come from Attorney General Andrew Cuomo’s office. Instead, the state Comptroller, Thomas P. DiNapoli, as trustee of the $132.6 billion New York State Common Retirement Fund, brought the suits against Merrill Lynch and Bank of America, claiming they violated federal securities laws.

According to DiNapoli: The lawsuit against Merrill Lynch seeks recovery for losses the fund suffered from the defendants’ fraud and deception related to Merrill’s exposure to securities backed by risky subprime mortgages. The lawsuit against Bank of America seeks recovery for losses the fund incurred based upon the company’s misrepresentation and concealment of material facts in connection with its purchase of Merrill Lynch, which also resulted in a $138 billion taxpayer bailout. 

The law firm of Entwistle & Cappucci LLP is managing the lawsuits for DiNapoli.