Settlement Alert: Bank of America

7/13/2016 - Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al., Civil Action No. 11-00733-WHP (S.D.N.Y.)

Barrack, Rodos & Bacine is pleased to announce that the Court has granted preliminary approval of a $335 million settlement of Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al., in which the firm serves as a Lead Counsel on behalf of the Court-appointed Lead Plaintiff, the Pennsylvania Public School Employees’ Retirement System (“PSERS”). PSERS manages the pension fund for present and retired school teachers and other public school employees in the Commonwealth of Pennsylvania.

Background

Pennsylvania Public School Employees’ Retirement System v. Bank of America Corp., et al. is a securities class action lawsuit filed in the United States District Court for the Southern District of New York before the Honorable William H. Pauley III, alleging that the defendants violated the federal securities law by making false and misleading statements regarding, among other things, the exposure of Bank of America Corporation (“BoA”) to demands for repurchase mortgage-backed securities and other loans. A copy of the Amended Consolidated Class Action Complaint in this action, filed on August 13, 2012 by Lead Counsel on behalf of the Lead Plaintiff, is available here. If the settlement is given final approval by the Court, the settlement will resolve all claims on behalf of a Class consisting of all persons (a) who purchased BoA common stock or Common Equivalent Securities on a U.S. public exchange during the period from February 27, 2009 through October 19, 2010 (“Class Period”) or (b) who purchased or acquired certain BoA common stock or Common Equivalent Securities in or traceable to a public offering during the Class Period. After more than six years of intensive litigation, including the depositions of more than 30 witnesses and the production and review of more than 8 million pages of documents, the parties agreed, subject to approval by the Court, to settle the case for $335 million in cash, which was deposited with the Court into an account on behalf of the Class. The settlement was the result of lengthy negotiations over 10 months, assisted by mediator Layn Phillips, a former U.S. District Court Judge. The settlement resolves all claims of Class members against all Defendants (as defined in the Long Form Notice). A copy of the Stipulation and Agreement of Settlement, dated March 11, 2016, is available here and the June 13, 2016, amendment to the Stipulation is available here. On June 15, 2016, the Court granted a motion for preliminary approval of the settlement. Click here for a copy of the Court’s preliminary approval order. 

Click here for a copy of the Long Form Notice, which explains important rights that members of the Class have, including how to become eligible for a possible distribution from the settlement. The legal rights of all Class members will be affected by the settlement. We encourage you to read the Long Form Notice carefully. 

To obtain a payment from the Settlement:

If you are a member of the Class described above, to be eligible to obtain a payment from the settlement, you must fill out, sign and send to the Claims Administrator, postmarked no later than November 14, 2016, a Proof of Claim and Release Form. The Proof of Claim and Release Form is available here. You may also obtain copies of the important documents in this litigation, including the Long Form Notice and the Proof of Claim and Release Form, from the Bank of America Securities Settlement Claims Administrator, c/o Heffler Claims Group, Claims Administrator, P.O. Box 360, Philadelphia, PA 19105; or by calling the following toll-free number maintained by the Claims Administrator: 1-800-644-7835. If you are outside the U.S. and Canada, please call 215-845-4405. Or you can email your request to BoASecuritiesSettlement@HefflerClaims.com

To find out more information about the Action and the Settlement:

Additional information about the action and the settlement are provided in the Long Form Notice issued pursuant to the Court’s order granting preliminary approval of the settlement, available here. NOTE: The Long Form Notice is the Court-approved document that explains the action, the settlement and the rights of Settlement Class members with respect to the action and settlement.

You may also obtain a copy of the Long Form Notice, Proof of Claim Form and Stipulation, as amended, from the Claims Administrator at http://www.BoASecuritiesSettlement.com, or by calling the Claims Administrator’s toll-free number provided above, or by emailing a request to BoASecuritiesSettlement@HefflerClaims.com.