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WASHINGTON – Investors who lost money when Bank of America Corp. bought Merrill Lynch without disclosing Merrill's problems can start applying to tap a $150 million compensation fund.
A federal judge Wednesday approved a detailed plan for distributing the money. The fund was set up as part of a settlement between the bank and the Securities and Exchange Commission.
The SEC charged that Bank of America withheld details that might have led shareholders to reject the Merrill deal. The bank didn't mention Merrill's plan to award $5.8 billion in bonuses after losing $27.6 billion that year.
Bank of America argued that the information was not important enough to warrant disclosure.
Shareholders as of Jan. 16, 2009 can apply for the money before Nov. 12.
