Damages stem from allegations of fraud in a 1998 securities sale
American International Group Inc. and a group of insurance and financial institutions have been awarded $141m from Banc of America Securities LLC in a lawsuit that alleged misrepresentation of risk in a 1998 securities sale.
The federal jury in New York awarded $85m in damages, and the balance in prejudgment interest, said Jeffrey Ross, a partner in law firm of Anthony Ostlund Baer Louwagie & Ross and lead attorney for the plaintiffs.
The case involved the sale of $648m in securities backed by the credit card debt of the customers of a home furnishings retailer that later went bankrupt.
The plaintiffs accused Bank of America of fraud in not informing the buyers of the true condition of the company.