Labaton Keller Sucharow LLP (“Labaton”) has filed a securities class action lawsuit (the “Action”) on behalf of its client the New England Teamsters Pension Fund (“New England Teamsters”) against Bank of America Corporation (“Bank of America” or the “Company”) (NYSE: BAC) and certain of its executives (collectively, “Defendants”). The Action, which is captioned New England Teamsters Pension Fund v. Bank of America Corporation., No. 26-cv-09137 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder on behalf of all persons and entities that purchased or otherwise acquired Bank of America common stock between August 1, 2025 and October 13, 2026, inclusive (the “Class Period”).
Bank of America is a multinational bank holding company that conducts most of its banking business through its wholly owned subsidiary, Bank of America, N.A. (“BANA”). On December 23, 2024, the Office of the Comptroller of the Currency (“OCC”), an agency of the U.S. Department of the Treasury, issued a cease-and-desist order against BANA requiring comprehensive corrective actions to address deficiencies in its Bank Secrecy Act/anti-money laundering (“BSA/AML”) and sanctions compliance programs (the “2024 Consent Order”). During the Class Period, the Company represented that the 2024 Consent Order related to only “certain aspects” of its compliance programs, that it had “already completed significant steps” to satisfy the order’s requirements, and that the compliance issues would not have a “material adverse financial impact” on the Company.
The Action alleges that, throughout the Class Period, Defendants knew or recklessly disregarded, but failed to disclose, that: (i) systemic weaknesses in BANA’s BSA/AML program caused it to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity; (ii) internal reports had documented BANA’s BSA/AML deficiencies for years, yet BANA had not adequately remedied them after the 2024 Consent Order; (iii) BANA also had deficiencies in its sanctions compliance program and processed transactions later identified as apparent violations of multiple sanctions programs; and (iv) fixing these deficiencies required significant additional compliance resources and exposed BANA to substantial penalties and costs. These facts rendered Defendants’ statements about the scope of BANA’s compliance failures, its progress under the 2024 Consent Order, and the expected costs and penalties materially false and misleading.
The truth began to emerge after the market closed on October 13, 2026, when the U.S. Department of Treasury announced coordinated enforcement actions against BANA resulting in more than $1.21 billion in penalties and settlements. The Financial Crimes Enforcement Network (“FinCEN”) assessed a $1.2 billion penalty, including credit for a $750 million penalty imposed by the OCC, and the Office of Foreign Assets Control (“OFAC”) separately announced an $11.6 million settlement. In its order, FinCEN stated that BANA admitted that it willfully violated the BSA and missed or delayed detecting and reporting more than $5 billion in suspicious activity. The OCC further found that, despite the 2024 Consent Order, BANA had failed to complete significant corrective steps and its BSA/AML program remained deficient. The truth continued to emerge the following morning, October 14, 2026, when Bank of America reported its third quarter 2026 results, showing that the regulatory settlement charge reduced diluted earnings per share by $0.17. Following the enforcement announcements and quarterly results, Bank of America’s stock price fell to an intraday low of $49.26 on October 14, 2026, before closing at $51.39, down 4.8% from the previous day’s closing price of $53.96.
If you purchased or otherwise acquired Bank of America common stock during the Class Period and suffered losses as a result, you may be a member of the proposed “Class” and eligible to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than December 15, 2026. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Connor C. Boehme, Esq. of Labaton at +1 (212) 907-0780, or via email at cboehme@labaton.com. You can view a copy of the complaint filed in the Action here.
New England Teamsters is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $6 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than ninety full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton is available at labaton.com.
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