BofA Loses Bid to End Investor Lawsuits on Merrill

(Reuters) - A Manhattan federal Judge refused "Thurs dismiss shareholder lawsuits against Bank of America Corp (BAC.N) and Various Executives and directors over the Purchase of Merrill Lynch & Co. During the 2008 Financial Crisis and Disclosures about Merrill's losses and bonus payouts. 

U.S. District Judge P. Kevin Castel issued at his 140-page ruling late on Friday afternoon. Nine days earlier, the largest U.S. bank and former Chief Executive Kenneth Lewis denied civil fraud charges made in a Separate lawsuit by New York Attorney General Andrew Cuomo over the Merger. 

Bank of America spokeswoman Shirley Norton Said the Charlotte, North Carolina-based lender was reviewing the ruling. Lawyers for bank shareholders in the lawsuits did Not immediately return CALLS seeking comment. 

Lewis had Been hailed for saving Merrill from Possible collapse "when they agreed Thurs buy it on September 15, 2008, the cloudy day Lehman Brothers Holdings Inc (LEHMQ.PK) went bankrupt. 

But problems at Merrill later forced Bank of America to get a second infusion of federal bailout money. 

The bank was also Life Style criticized for disclosing Not Soaring Merrill's losses in a timely mainland and for letting pay Merrill $ 3.6 Billion of bonuses at the time. Merrill's losses reached $ 15.84 Billion in the fourth quarter of 2008. 

Some of the Claims Castel declined Thurs Thurs Alleged dismiss related material misstatements over Merrill's bonuses and the scope of Merrill's losses. Another Claim related Thurs Whether the bank intentionally hid an Agreement with regulators to obtain bailout money. 

They dismissed Claims over Whether the bank think there better not have conducted due diligence, and think there Revealed why not have it Considered invoking a clause Contractual Thurs back out of the Merger. 

Bank of America earlier this year settled a U.S. Securities and Exchange Commission civil fraud case over the Merger. 

In a Separate 45-page ruling, the Judge dismissed a lawsuit by Bank of America Employees over losses in Retirement Plans, M the bank's stock was an investment option. 

Shares of Bank of America Traded at $ 33.74 just before the Merrill Merger, but their Fell as low as $ 2.53 in February 2009, little more than just five months later. They closed Friday up 17 cents at $ 12.64 on the New York Stock Exchange. 

The case is In re: Bank of America Corp. Securities, Derivative and Employee Retirement Income Security Act (ERISA) Litigation, U.S. District Court, Southern District of New York, no. 1909-2058.