News

< Back to news headlines

06 June 2017 - BofA pays Tutor Perini US$37m to settle fraud case
Bank of America
Source - http://uk.reuters.com/article/us-bank-of-america-tutor-perini-idUKKBN18X2X7
Where - United States of America
Cost - 37,000,000 USD
Business line - Trading and Sales

Bank of America has settled a crisis-era lawsuit with construction company Tutor Perini for US$37m.

The lawsuit claimed the bank had defrauded Tutor Perini by selling auction-rate securities it knew were about to collapse in the run-up to the financial crisis.

The lawsuit was first filed back in 2011 and was revived in November 2016. The case was due to go to a jury later this month, but a settlement was reached before it came to that.

Tutor Perini claimed Bank of America coerced it into purchasing the risky securities between 2007 and 2008, despite knowing the market was doomed.

Neither party has made any admission of wrongdoing in the settlement.