Judge Castel issued a short Order today reflecting some skepticism about a proposed $20 million settlement in the derivative suit arising from Bank of America’s acquisitions of Merrill Lynch and Countrywide. A fairness hearing is set for January 11, and Judge Castel ordered the parties to consider revising the deal before then:
Without deciding any issue and only by way of example, the Court has not yet been persuaded of the fairness, reasonableness and adequacy of a settlement of the derivative claims against defendant [former Bank of America CEO Kenneth] Lewis in exchange for corporate governance reforms of unquantifiable value and $20 million in cash, some, most or all of which will be consumed by plaintiffs’ attorneys’ fees.
Counsel for the lead derivative plaintiffs, the individual defendants and the Delaware objectors are directed to meet at 2 p.m. on January 7, 2013 at the offices of counsel for the individual defendants to discuss revisions to the proposed settlement.
Prior posts on this case are here.