Trust Updates Archive
CTF to MF Conversion
Second BofA Lawsuit--Includes Market-Timing Allegations
(November 10, 2003, CHICAGO, IL)--Following on the heels of the Parsky v. Wachovia settlement, a new class action has been filed against Bank of America alleging improprieties in the conversion of common trust funds to proprietary mutual funds. This latest case also alleges damages resulting from "late trading" and "market timing."
This is the second case against BofA. The first case, Williams v. BofA, was filed in state court in Palm Beach County in December 2002. The new case, Arnold v. Bank of America, was filed in federal court in California on November 5. Both cases allege that BofA (or an acquired subsidiary) conspired to double-dip by forcing individual trusts to have their assets redirected from individually managed accounts and/or common trust funds to the bank's proprietary mutual funds. However, the new case, Arnold, also alleges damages resulting from late trading and market timing in the bank's proprietary mutual funds, the Nations Funds. Large mutual fund families, including Bank One (which settled a conversion case earlier this year) and Bank of America have been the subject of investigations regarding so-called "after hours" trading.
The complaint does not specify dollar damages.
Arnold v. Bank of America, No. 03-7997, Central District of California, filed November 5, 2003.
For complete coverage of this new case, see the upcoming November issue of TRN. (TRN is published at the end of each month.) For coverage of the Parsky settlement, see the October issue of TRN.
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