BofA Misses Deadline to Turn Over Merger Documents, as SEC Broadens Probe
The Securities and Exchange Commission is broadening its investigation of Bank of America’s disclosures to shareholders, and the probe could include information revealed after a waiver of attorney-client privilege.
The SEC released a statement Monday pledging a vigorous investigation, the Washington Post reports. The development follows a judge’s refusal to accept the agency’s $33 million settlement with the bank, accused of misleading investors about plans to pay bonuses to Merrill Lynch executives before acquiring the company.
“[W]e will vigorously pursue our charges against Bank of America and take steps to prove our case in court,” the SEC statement says. “We will use the additional discovery available in the litigation to further pursue the facts and determine whether to seek the court’s permission to bring additional charges in this case.”
According to the Post, the SEC has said that the judicial proceeding may require a waiver of attorney-client privilege that wasn’t available in its initial investigation.
The privilege issue is also a concern for Bank of America in a dispute with the chairman of a House committee who gave the bank a Monday deadline to disclose lawyers’ advice on its merger with Merrill Lynch. The bank did not meet the deadline, according to the American Lawyer and the Associated Press. A bank executive plans to meet today with the committee chairman, U.S. Rep. Edolphus Towns, D-N.Y.
Wachtell, Lipton, Rosen & Katz represented Bank of America in the takeover, and Shearman & Sterling represented takeover target Merrill Lynch.
