{"id":6158,"date":"2017-06-09T18:22:56","date_gmt":"2017-06-09T23:22:56","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1605"},"modified":"2022-05-19T13:44:51","modified_gmt":"2022-05-19T18:44:51","slug":"bank-america-unit-settles-auction-rate-securities-fraud-lawsuit-tutor-perini-37m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-america-unit-settles-auction-rate-securities-fraud-lawsuit-tutor-perini-37m\/","title":{"rendered":"Bank of America Unit Settles Auction-Rate Securities Fraud Lawsuit by Tutor Perini for $37M"},"content":{"rendered":"

Merrill Lynch Pierce Fenner & Smith<\/a>, a Bank of America (BAC) <\/a>unit will pay Tutor Perini Corp. $37M to settle a securities case accusing the broker-dealer of selling the construction company millions of dollars of auction-rate securities (ARS) without giving it the heads up that the market was likely to experience a \u201cspectacular crash.\u201d Despite settling, neither party is admitting to wrongdoing.<\/p>\n

Tutor Perini, which brought its ARS fraud case in 2011, claims that the brokerage firm, then called Banc of America Securities LLC<\/a>, purposely directed it to buy ARS in 2008 even while knowing that the investments were problematic. By December 2007, the construction company had invested about $196M in ARSs. After the market failed Tutor Perini said that it had no choice but to sell the securities at a huge discount in a secondary market.<\/p>\n

A district judge initially granted the broker-dealer summary judgment based on the determination that the construction company did not demonstrate misconduct by the Bank of America unit when the latter sold student loan-backed ARSs. Last year, however, the First Circuit partially reversed that ruling after finding that a jury could potentially determine that at least some of the ARSs bought by the construction company were a result of assessments that proved inaccurate because the broker-dealer did not examine certain key developments. Reviving the lawsuit, the federal appeals court said that dismissing certain Massachusetts state securities fraud claims and federal claims was a mistake.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Merrill Lynch Pierce Fenner & Smith, a Bank of America (BAC) unit will pay Tutor Perini Corp. $37M to settle a securities case accusing the broker-dealer of selling the construction company millions of dollars of auction-rate securities (ARS) without giving it the heads up that the market was likely to experience a \u201cspectacular crash.\u201d Despite […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3865,3751,3752],"tags":[],"class_list":["post-6158","post","type-post","status-publish","format-standard","hentry","category-auction-rate-securities","category-bank-of-america","category-financial-firms"],"yoast_head":"\nBank of America Unit Settles Auction-Rate Securities Fraud Lawsuit | Securities Fraud Attorney<\/title>\n<meta name=\"description\" content=\"A Bank of America unit will settle an 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