Bank of America Shareholder Files Suit Alleging Lack of Due Diligence in RMBS Offerings

On September 19, 2011, a Bank of America shareholder (a profit sharing plan) filed suit in New York Supreme Court against the Bank and certain present and former directors and officers. The suit alleges that Bank of America, while acquiring and securitizing large volumes of mortgage loans, failed to conduct due diligence adequate to ensure the accuracy of the RMBS offering documents. The complaint further alleges that Bank of America included in the securities pools a significant number of mortgages recommended for omission by third-party due diligence providers that Bank of America had retained. Plaintiff seeks unspecified damages for losses in stock value, but the complaint does not cite specific legal causes of action. Complaint.