8-KOther Events

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Dec 21, 2005)

Filed December 21, 2005For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

This 8-K filing from Bank of America Corporation (BAC) on December 21, 2005, announces the resolution of significant litigation. The company, along with American Express Travel Related Services Company, Inc., has agreed to dismiss with prejudice the lawsuit *American Express Travel Related Services Company, Inc. v. VISA U.S.A., Inc., et. al.* as it pertains to Bank of America entities. This agreement aims to prevent future claims related to the subject matter of this litigation. This development is positive for investors as it removes a legal uncertainty and potential financial exposure for Bank of America. The dismissal with prejudice means the case cannot be refiled, providing a definitive end to this specific legal dispute involving Bank of America and American Express. The unconditional agreement by American Express not to bring similar claims against Bank of America and its affiliates further strengthens this resolution.

Key Highlights

  • 1Bank of America Corporation and American Express have agreed to dismiss litigation titled *American Express Travel Related Services Company, Inc. v. VISA U.S.A., Inc., et. al.*
  • 2The dismissal will be with prejudice, meaning the case cannot be refiled.
  • 3This settlement specifically applies to all Bank of America entities involved, including Bank of America, N.A., Fleet National Bank, and Fleet Bank (R.I.), N.A.
  • 4American Express has also unconditionally agreed not to pursue similar claims against Bank of America or its subsidiaries and affiliates.
  • 5The agreement resolves a legal dispute pending in the United States District Court for the Southern District of New York.
  • 6This filing is classified under 'Other Events' (Item 8.01) and was filed on December 21, 2005.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that Bank of America Corporation and American Express Travel Related Services Company, Inc. have reached an agreement to dismiss a lawsuit with prejudice, thereby resolving a significant legal dispute between them.

A 'dismissal with prejudice' means the lawsuit cannot be brought again. For investors, this is important because it signifies a final resolution of the legal matter, removing uncertainty and potential future financial liabilities associated with this specific litigation for Bank of America.

No, the filing explicitly states that American Express has unconditionally agreed not to bring claims similar to those in the dismissed litigation against Bank of America or any of its subsidiaries or affiliate companies. This provides a clear shield against future claims from American Express on this specific issue.

The agreement covers all Bank of America entities involved in the litigation, specifically mentioning Bank of America Corporation, Bank of America, N.A., Fleet National Bank, and Fleet Bank (R.I.), N.A.