News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

The Holden Arboretum

Don Drumm Studios

Meaden & Moore


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


Historic settlement reached with Bank of America
Money will go to State Teachers Retirement System and the Ohio Public Employees Retirement 
by WKSU's STATEHOUSE CORRESPONDENT JO INGLES


Reporter
Jo Ingles
 
In The Region:

A $2.4 billion class action lawsuit has been settled against one of the nation’s largest banks in favor of investors who lost billions, including two of the state’s largest pension systems. Ohio Public Radio’s Jo Ingles has details on what is being hailed as an historic settlement.

Historic settlement reached with Bank of America

Other options:
Windows Media / MP3 Download (2:59)


Ohio Attorney General Mike DeWine says this class action lawsuit settlement sets a record.

DeWine – The settlement we are announcing this morning is the single largest securities class action settlement ever.

DeWine estimates the two point four billion dollar national settlement with Bank of America will allow the State Teachers Retirement System and the Ohio Public Employees Retirement system to receive a total of 20 million dollars, depending on the number of claims filed by investors who lost millions in 2009.  DeWine says that’s when Bank of America and Merrill Lynch made materially false statements and obmissions in connection with the Merrill Lynch acquisition.

DeWine – There was a general reference to losses but never was the magnitude of those losses disclosed.  This would be akin to telling someone to watch out for a pothole when they were about to fall into the Grand Canyon.

DeWine says the amount of the settlement is high enough to serve as a deterrent for other companies to hide basic information from investors in the future.

DeWine – This is outrageous behavior and they have paid a price for it.  What we hope for in the future is that companies do not do that…that they are very open as most companies are.  And that they follow what the law requires them to do and that is, once they have the information, they are required that to shareholders.  They had the opportunity to supplement the information they had put out before, they had the opportunity to go public with this to their shareholders.  They had the information and they simply failed to do it.  They hid it. 
DeWine says it’s unclear exactly how much the state’s pension funds lost in the bad investments with Bank of America though he admits this settlement might not make them whole.  But DeWine says it was still the smart thing to do.

DeWine – We had some very good lawyers working on this, supplemented by some good lawyers from our office.  WE have spent a lot of time on this.  There is risk in any trial.  This trial was sent to go forward in October.  We do calculations.  Each side looks at it and calculates their risk and so that was done as we expect it to be done by good lawyers in the case.  So I’m very happy with the settlement and happy with the size of it.  I think the pension systems in Ohio and the people who belong to those pension systems should be very happy with the results that have been achieved.

DeWine says the settlement will be shared with pension systems in Texas, Sweden and the Netherlands.

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Pluto: The Browns split from Manziel is long overdue
Get Brock Osweiler from the Denver Broncos! He's fantastic and seems like a great person.

Democratic Senate hopeful P.G. Sittenfeld pushes for local gun control
That makes no sense at all... why not let cities determine driving codes as well? Maybe Cincy want's folks to drive on the left side of the road. What could go ...

Exploradio: Autism in the workplace
I would love to get more information re: Autism on The Town and other such programs in Northeast Ohio. Thanks!!

Human trafficking cases rise in Ohio
It is about time this is presented to proceed with a plan of prevention..to protect our youth.And very necessary to inform communities through school, churches ...

Fermented food company aims to preserve Cleveland's farm-to-table movement
This is terrific! I make my own sauerkraut and consider it vital to good health. Well done, I wish you all success.

Ohio doctors get new guidelines for prescribing certain painkillers
I would gladly smoke pot to get off pain killers but its not legal.It would save the hassle of doctor visits for pill counts,pee tests,blood tests,driving to pi...

Ohio unemployment cuts are nearing a Statehouse vote
What about those that are laid off seasonally? My husband has been employed by the same company for 26 years and has been laid off (for the last 17) mid-Januar...

Ban on microbeads is a big step in fighting plastic pollution
What a bunch of liberal "so open minded their brains fell out" tree huggin yuppies. Professing to be wise they became fools.

Who's on -- and left off -- Ohio's medical marijuana task force?
Biggest joke everm these people are evil they know marijuana is harmless they rigged the polls last nov everypne kmows it

Dayton 'Black Lives Matter' protesters to appear in court today
Police to fast with the trigger finger and not the brain.A lot of police officers out here judge by color first instead of accessing the situation first. If a p...

Copyright © 2016 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University