Finkelstein & Krinsk LLP Files Class Action Lawsuit Against Bank of America Corporation

SAN DIEGO, Jan. 25 /PRNewswire/ -- A class action securities lawsuit Montgomery v Bank of America Corporation, et. al., has been commenced in the United States District Court for the Southern District of New York on behalf of persons and entities that purchased certain Bank of America Corporation ("BofA") (NYSE: BAC) shares of Fixed to Floating Rate Non-Cumulative Preferred Stock Series K ("Series K Securities"); shares of the BofA 7.25% Non-Cumulative Perpetual Convertible Stock ("Series L Securities"); or shares of the BofA 8.20% Non-Cumulative Preferred Stock, Series H ("Series H Securities") pursuant or traceable to the Registration Statement and Prospectuses issued in connection with the securities offerings (the "Offerings").

The complaint alleges that BofA and certain of its officers, directors, underwriters and auditors violated the Securities Act of 1933. Specifically, on or about January 25, 2008, BofA consummated the Series K Offering selling 6 million shares of the Series K Securities for proceeds of $6 billion. On or about January 28, 2008, defendant consummated the Series L Offering selling 6.9 million shares of the Series L Securities for proceeds of $9.6 billion. On or about May 20, 2008, defendant consummated the Series H Offering selling 117 million shares of the Series H Securities for proceeds of $2.925 billion. On January 16, 2009, BofA issued a press release for the fourth quarter and full year 2008 reporting a net loss of $1.79 billion and reporting inter alia, CDO-related losses of $1.72 billion, an allowance of $2.99 billion for loan and lease losses during the quarter and writedowns of commercial mortgage-backed securities and related transactions of $853 million.

According to the complaint, the true facts omitted from the Registration Statement and Prospectuses were: (a) The Company's loans, leases, CDOs, and commercial mortgages backed securities were impaired to a far greater extent than disclosed, (b) Defendants failed to properly record losses for impaired assets, (c) The Company's internal controls were inadequate to prevent the Company from improperly reporting its impaired assets, and (d) The Company's capital base was inadequate relative to the magnitude of impaired assets.

Plaintiff seeks to recover damages on behalf of all persons who acquired the Securities pursuant or traceable to the Registration Statement and Prospectuses issued in connection with the Offerings (the "Class"). Plaintiff is represented by Finkelstein & Krinsk LLP and Klafter Olsen & Lesser LLP, highly experienced law firms litigating securities cases throughout the country.

As a member of the Class described above, you may, not later than March 26, 2010, move the Court to serve as lead plaintiff for the Class. If you choose to do nothing you will remain an absent class member. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your sharing in any recovery is not, however, affected by the decision to serve as a lead plaintiff. If you want to discuss this matter or your rights or interests, please contact our office at 877.493.5366, by fax to 619.238.5425, or by writing Finkelstein & Krinsk, LLP, 501 West Broadway, Suite 1250, San Diego, CA, 92101, or via email at [email protected].

SOURCE Finkelstein & Krinsk LLP