Trust Updates Archive
(Jan. 17, 2005, Chicago, IL)--Another law suit involving a common trust fund conversion has been filed against Bank of America. BofA also is one of several banks defending itself against class action alleging late trading related to proprietary mutual funds. On December 16, 2004, the bank was hit by the latest conversion suit.
Legal experts have been predicting a rise in fiduciary class actions, and a rash of six new conversion class actions and an equal number of 401k cases seem to bear them out. However, all six conversion cases involve Bank of America and are substantially one case filed six times--driven in large part by the same group of attorneys. While the 401k cases have different defendants, the bulk of the plaintiffs are represented by the same law firm (see Nov./Dec issue of Trust Regulatory News). The law firms in the conversion cases and the 401k actions are not related.
Whether pursuing fiduciary class-actions becomes a profitable endeavor will in large part be determined by the final outcomes of these new cases, say legal sources. Previous conversion class-action settlements involving Bank One (formerly F.N.B. of Chicago) and Wachovia (formerly First Union) have sent mixed messages.
For a complete summary of conversion class actions (including those settled or dismissed), see the January issue of TRN.
-- Copyright ©2005 A.M. Publishing, Inc., Trust Regulatory News
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