Bank of Americas' shareholders are filing lawsuits against the company, its chief executive Kenneth Lewis and former Merrill Lynch CEO John Thain, claiming they weren't told about the true financial condition of Merrill Lynch before the banks merged in December.
The latest filing -- made on Thursday in the Southern District of New York -- alleges that proxy statements provided to shareholders prior to the acquisition did not accurately disclose Merrill's financial condition and the risks. They also stated that Bank of America failed to make a proper investigation into the deal, The Associated Press reported Friday.
Bank of America, Lewis and Thain are listed in the lawsuit as defendants, according to AP. The lawsuits claim that Lewis should have told the important information prior to the December 5 vote on the acquisition.
Thain resigned on Thursday after a brief meeting with Lewis in New York. According to reports, he failed to explain Merrill Lynch's unexpected loss of $15.31 billion in the fourth quarter, according to the Wall Street Journal.
Bank of America had to ask for additional U.S. government bailout funds of $20 billion to absorb the debt. More pressure rose when reports emerged that Merrill Lynch paid bonuses estimated worth about $3 billion to $4 billion to executives three days before the closing of its sale to BofA, according to the Financial Times.