Bank of America Pays $460.5 million Settlement

Bank of America is settling a lawsuit filed by investors over its part in the collapse of WorldCom for $460.5 million.

Fourteen other banks are involved with the lawsuit including JPMorgan Chase & Co. and Deutsche Bank.

“The pressure will mount on the remaining defendants,” said Robert Mintz, a defense lawyer with McCarter & English. “No one will want to be the last defendant standing in a suit in which the liability is seemingly bottomless.”

According to a Times Online article,

“The announcement came as a New York jury heard closing arguments in the trial of Bernie Ebbers, WorldCom’s former chief executive, who is charged with masterminding the fraud at the company.

The court was told that witnesses who testified against Mr Ebbers were liars trying to avoid jail. Summing up his case, the defence lawyer, Reid Weingarten, attacked the statements made by the 14 prosecution witnesses.”

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