Bank of America Settles WorldCom Suit

    March 3, 2005

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

There are 14 other banks involved with the lawsuit. Among them are 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 Reuters article,

“In a statement, Charlotte, North Carolina-based Bank of America denied any violations of law, and said it settled “in order to eliminate the uncertainties, expense and distraction of further litigation.” The bank said it previously set aside money to cover the settlement.

Citigroup Inc, the largest U.S. bank, last year agreed to pay $2.58 billion to settle with investors over its dealings with WorldCom.”

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