Former Bank of America Corp Chief Executive Kenneth Lewis has settled a lawsuit over his Merrill Lynch & Co acquisition. The lawsuit had accused Lewis of deceiving investors.
New York Attorney General Eric Schneiderman accused Lewis of misleading shareholders and the government to carry out the merger. Lewis will have to pay up for the claims, settling at $10 million.
Lewis was under fire for concealing Merrill’s losses from Bank of America shareholders. He also was suspected of manipulating the U.S. government into handing over $20 billion in bailout cash. Lewis claimed falsely that he would back out of the merger if he didn’t receive the money.
The lawsuit also settles Lewis’ ability to work as an office or director of a public company. He is barred from such work for three years. Bank of America plans to develop new reforms when reviewing large acquisitions. The bank will pay $15 million towards the lawsuit.
Lewis acted as the bank’s chief executive from 2001 to 2009.
Details and photo courtesy of Reuters