NEW YORK (TheStreet) -- The second U.S. Circuit Court of Appeals in New York announced on Monday that Bank of America (BAC) was not liable to shareholders for allegedly hiding a $10 billion fraud lawsuit filed by American International Group Inc. (AIG) in 2011, Reuters reported.
The court said it found no evidence that Bank of America officials, including CEO Brian Moynihan acted with intent to mislead shareholders by not reporting the lawsuit before it was filed.
On August 8, 2011 AIG sued Bank of America over an alleged $28 billion loss of mortgage-backed securities, which the insurance company bought from Bank of America and its Merrill Lynch units, Reuters said.
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In November 2013 U.S. District judge John Koeltl first ruled that Bank of America was not liable and Monday's decision by the appeals court upheld the November ruling.
Shares of Bank of America are up 0.62% to $14.60.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."