B of A settles $75 million Merrill Lynch employees’ ERISA class-action lawsuit.
New York, NY (NewYorkInjuryNews.Com)–Lawyers for the plaintiffs filed a lawsuit against Merrill Lynch & Company alleging violations of the Employee Retirement Income Security Act (ERISA), in federal court in November 2007. Lawyers for the wronged employees announced the settlement agreement, which was endorsed by a federal judge earlier this year, on Monday as reported by Reuters.
According to court documents, Merrill offered stock as a retirement plan option to employees in the presence of the company’s highly increased exposure to sub-prime mortgages and numerous other types of financial debt and risky investments. Employment law attorneys for the plaintiffs claim offering Merrill Lynch stock to employees from September 2006 through December 2008 was a violation of the federal ERISA pension plan which provides funds for employees retirement. Bank of America, who now owns Merrill Lynch, agreed to the $75 million class action lawsuit settlement and will appear July 27, 2009 in a court hearing for the approval.