BofA shareholders may pursue lawsuit over MERS, mortgages

(Reuters) – A federal judge refused to dismiss a lawsuit accusing Bank of America Corp (BAC.N) of misleading shareholders about its exposure to risky mortgage securities and its dependence on an electronic mortgage registry known as MERS.

U.S. District Judge William Pauley in Manhattan said shareholders led by a Pennsylvania school pension fund may pursue securities fraud claims against the second-largest U.S. bank to recover billions of dollars of alleged losses.

Pauley said the allegations raised a “strong inference” that Bank of America intended to mislead about its reliance on the registry, vulnerability to mortgage buyback claims, internal controls and compliance with accounting and securities rules.

Rest here…

Ruling below…

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4closureFraud.org

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BofA Ruling