Summary
This 8-K filing from Bank of America Corporation (BAC), filed on December 3, 2009, reports on significant legal developments. Specifically, on November 25, 2009, Bank of America, N.A. (BANA) was named as a defendant in two lawsuits filed in the U.S. District Court for the Southern District of New York. These lawsuits stem from BANA's roles as collateral agent, custodian, and indenture trustee for Ocala Funding, LLC (Ocala), a mortgage warehousing facility that funded Taylor, Bean & Whitaker Mortgage Corp. (TBW). The plaintiffs, BNP Paribas Mortgage Corporation and Deutsche Bank AG, allege breach of contract, negligence, and indemnification claims. They assert that BANA failed to adequately protect the collateral backing more than $1.6 billion in securities they purchased from Ocala. The plaintiffs are seeking unspecified compensatory damages. This filing is material as it discloses significant litigation that could potentially impact the company's financial performance and reputation.
Key Highlights
- 1Bank of America, N.A. (BANA) named as defendant in two lawsuits.
- 2Lawsuits filed in U.S. District Court for the Southern District of New York.
- 3Allegations relate to BANA's roles as collateral agent, custodian, and indenture trustee for Ocala Funding, LLC.
- 4Plaintiffs include BNP Paribas Mortgage Corporation and Deutsche Bank AG.
- 5Claims include breach of contract, negligence, and indemnification.
- 6Plaintiffs allege BANA failed to protect collateral for over $1.6 billion in securities issued by Ocala.
- 7Unspecified compensatory damages are being sought by the plaintiffs.