Munger, Tolles & Olson won a dismissal on behalf of Bank of America Corporation and its senior executives of a shareholder class action alleging the bank should have warned investors before American International Group filed a $10.5 billion mortgage-backed securities fraud suit against the bank. The suit, which was filed in August 2011, was dismissed on November 4, 2013.
In dismissing the complaint, U.S. District Judge John G. Koeltl of the Southern District of New York ruled that BofA had provided sufficient notice of the mortgage-backed securities litigation it faced generally, that the bank’s truthful statements about its litigation exposure were not rendered misleading by the absence of a specific disclosure about AIG’s potential lawsuit, and that there were sufficient media reports about AIG's potential lawsuit to communicate its salient details to reasonable investors. The court further held that the complaint did not allege facts supporting an inference of wrongful intent or recklessness on the defendants’ part.
George M. Garvey, Marc T.G. Dworsky and Newman A. Nahas defended Bank of America in the action.
Mr. Garvey focuses his practice on securities and corporate governance, including class actions and derivative suits.
Mr. Dworsky handles complex litigation in federal and state courts nationwide, particularly in the financial sector.
Mr. Nahas has a wide-ranging practice, with a focus on securities and corporate governance.