Bank of America announced on Friday that it will pay $2.43 billion to settle a class-action lawsuit with shareholders following its acquisition of Merrill Lynch in 2008. The $50 billion deal came within days of Merrill Lynch’s collapse, effectively preventing the bank from going bankrupt. Bank of America denied the lawsuit’s allegations that its executives made misleading statements about both firms’ financial health at the time, but has said it will institute new corporate governance policies as part of the settlement. The costly suit will result in a $1.6 billion blow to the bank’s third-quarter earnings, the results of which will be reported on Oct. 17th.
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