$50B Lawsuit Against Bank of America Looms: Report

A $50 billion lawsuit against Bank of America(BAC) that arises from the bank's acquisition of Merrill Lynch in 2008 is making its way in Federal District Court in Manhattan, according to The New York Times.

The plaintiffs -- which include the Ohio Public Employees Retirement System and a Netherlands pension plan -- contend Bank of America engaged in a deliberate effort to deceive the bank's shareholders, the Times said.

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The plaintiffs say former CEO Kenneth Lewis and Joseph Price, former chief financial officer, began to learn of large losses at Merrill Lynch in early November 2008, months before the acquisition closed.The plaintiffs claim that Price and other senior Bank of America executives sought to keep quiet about the losses, estimated at up to $10 billion. Bank of America most likely will try to settle the litigation, according to the Times. The settlement value appears to be in the billions.-- Written by Joseph Woelfel>To submit a news tip, send an email to: tips@thestreet.com.

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