Bank of America Corp. (BAC) is the subject of a lawsuit that accuses the bank of hiding foreclosure problems that contributed to a drop in its share price.

The suit, filed by a union benefit plan, says Bank of America concealed problems in its recording of mortgages, Reuters reported. This damaged investors when the company suspended foreclosure proceedings last year, the suit says.

"We are reviewing the lawsuit and have no further comment at this time," said Bank of America spokeswoman Shirley Norton.

Attorneys general in all 50 states are investigating foreclosure practices after accusations that lenders were using flawed paperwork to foreclose on homes.

The suit is a proposed class action suit. The plaintiff purchases almost 25,000 Bank of America shares in a three-month period last year.

The suit proposes a class made up of all who bought the stock between January 20, 2010 and October 19, 2010.


Increase your money and finance knowledge from home

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Add a Comment

*0 / 3000 Character Maximum

12 Comments

Filter by:
pullarrow

B of A = bank of afganistan . after 3 months into the modification process and countless request for more paper work . The bank of "america" told me i never apply for the process .they have kick me around like a ball and probably laughing about it . i have been divorce and now down to one income and taking care of two kids full time these guys should be legally responsible for what they have done to me !

February 06 2011 at 4:35 AM Report abuse rate up rate down Reply
pullarrow

B of A = bank of afganistan . after 3 months into the modification process and countless request for more paper work . The bank of "america" told me i never apply for the process .they have kick me around like a ball and probably laughing about it . i have been divorce and now down to one income and taking care of two kids full time these guys should be legally responsible for what they have done to me !

February 06 2011 at 1:30 AM Report abuse rate up rate down Reply
pullarrow

B of A = bank of afganistan . after 3 months into the modification process and countless request for more paper work . The bank of "america" told me i never apply for the process .they have kick me around like a ball and probably laughing about it . i have been divorce and now down to one income and taking care of two kids full time these guys should be legally responsible for what they have done to me !

February 06 2011 at 1:30 AM Report abuse rate up rate down Reply
terrymanard

Mortgage refinancing is an outstanding plan particularly as the home mortgage rates are imminent downward. Under such state of affairs it will be beneficial for you to refinance your home as you’ll be able to obtain a lower interest rate thereby reducing the amount of your monthly payment. Search online for "123 mortgage refinance".

February 04 2011 at 3:44 AM Report abuse rate up rate down Reply
johndson

How about we look into the mortgage securitization process, the mortgage warehouse banks, the 100% commissioned sales people who sold hundreds of thousands of mortgages on teaser rates and lies, let's print the names of the congress members who wrote all of the mortgage deregulation into law, let's shine a bright light on Alan Greenspan who kept interest artificially low and the discount rate for bank borrowing even lower, oh and let's have a REAL close look at the companies who rated all of these motrgage backed securities AAA, when they KNEW they were ticking time bombs! Or how about the FDIC picking up the losses on short sale foreclosures, letting the tax payers hold the bag AGAIN! The whole process from top to bottom is flawed. AND it has not been fixed!

February 03 2011 at 12:53 PM Report abuse +2 rate up rate down Reply
1 reply to johndson's comment
jkennedy806

Today is call your state attorney general and complain about the banks. I already did. do it. I think the US needs to take a page out of other countries who march in the streets when the government ignores the people.
Albeit, the weather for US is not very nice -- so call and email.

February 03 2011 at 1:51 PM Report abuse +3 rate up rate down Reply
Michael

Amazing!!! This class action suit is brought by "a class of all who bought stock Jan 20, 2010 and Oct 19, 2010". What about all those who lost their homes due to the banks using "flawed paperwork" to forclose on those homes; is anyone fighting for them?
The banking industry is more than plenty rich. The world should declare a Holiday and start over.
Ok, I'm going back on my meds.

February 03 2011 at 11:59 AM Report abuse +1 rate up rate down Reply
2 replies to Michael's comment
jkennedy806

I have one of those too, here is how I lost -- had a nice portfolio, in 2008 it tanked big time, lost half of value in it. It was a Met Life portfolio, I imagine it had CDO's in it. My neighbor also had the same, she rec'vd a negative balance one day. I told her to liquidate -- and we both did. Now I am fighting with Wells Fargo who claims owns my mortgage. Of course the investor is Edward Jones. It's a Fannie Mae. I have asked for the documentation 4 x's thru RESPA. Did I get it NO. I have written the OCC 3 x's all I got was a form letter. Yes, this should all stop two years ago, under TARP/HAMP and making my home affordable. One of the reasons was to get the paper work back in order. of the 10 million foreclosures only 500,000 ever got perm mod's. that's not a good return. Why, cause the paperwork is messed up. Why is it now I have to get ahold of a lawyer, to save my house, cause a bank messed up. And don't even get me started on the ACT 91 that was sent 3 months late to 5 different addresses, the rocket docket with the rubber stamps and the default judgement with rubber stamps and not even date stamped in the court or time stamped. Who is going to step up to the plate and defend the American people.

February 03 2011 at 1:46 PM Report abuse +1 rate up rate down Reply
jkennedy806

The reason the paperwork is so messed up is it's not there loan. I am a victim of note note who has the note. ????

February 03 2011 at 1:48 PM Report abuse +1 rate up rate down Reply
al myers

I see the big oil names are making another out of sight large profit. When can us the people see a drop? It is funny that no one ever hears anything about what can be done about those high prices. Our President as well as the Ca Governor did not even mention those high prices and what can be done in their big speaches.

Thanks

February 03 2011 at 11:25 AM Report abuse +1 rate up rate down Reply
jkennedy806

Get the investors out of the mortgage business. It's betwween the homeowner and the bank PERIOD!! those toxic dervatives CDO's tanked. Oh well, I lost in the market too, can I suit. PLLLEEEEZZZZZZZZZZE get a grip. You took a risk on risky fraudulent dervatives. YOu lost, join the club

February 03 2011 at 9:35 AM Report abuse +1 rate up rate down Reply
sjoberdix

Its the tip of the iceburg!!!!!!!!!!!!!!!

February 03 2011 at 9:10 AM Report abuse +2 rate up rate down Reply