Bank of America (NYSE:BAC) Settles Class-Action lawsuit in $2.43 Billion Deal – BAC, BKU, BHLB, FHN

Bank of America Corp. (NYSE:BAC) mentions that it has decided to pay $2.43 billion to fix a class-action court case linked to its purchase of Merrill Lynch at the height of the financial crisis.

Shareholders alleged the Bank of America in this lawsuit and some of its officers made fake or misleading statements regarding both corporations financial position.

The court case was filed on behalf of investors who bought or held Bank of America stock when the corporation reported that it aims to acquire Merrill Lynch in a $20 billion agreement as the banking industry and federal watchdogs resisted containing fallout from the financial crisis in the fall of 2008.

Bank of America’s Agreement to acquire Merrill Lynch was forged on the similar September 2008 weekend that Lehman Brothers collapsed.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. BankUnited (NYSE:BKU) fell -0.04% to settle at $24.61, Berkshire Hills Bancorp, Inc. (NASDAQ:BHLB) moved down -1.25% to end at $22.88 while First Horizon National Corporation (NYSE:FHN) dropped -1.03% to finish at $9.63 on Friday.

Bank of America Corp. (NYSE:BAC)’s last session’s volume of 119.003 million shares was surprisingly lower than its average volume of 146.86 million shares. The stock after opening at $8.89 hit high price of $8.93 and then closed at $8.83 by scoring -1.56%.

The liquidity measure in recent quarter results of the company was debt to equity ratio was 2.66 and long-term debt to equity ratio remained at 1.28. The Company had total cash of $636.85 billion at hand and a book value per share as $20.16 in the most recent quarter.

The stock’s price volatility was 2.42 % for a week and 3.00% for a month as well as price volatility’s Average True Range for 14 days was 0.26 and its beta remained at 2.35.

BAC generated revenue of $60.72 billion in the previous twelve months and earned $9.87 billion. The Company showed a positive 11.62% in the net profit margin as well as in its operating margin which remained at 14.07%. Company’s annual sales growth for the past five years was -3.36%.

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