Is Bank of America on the Brink of a Legal Nightmare?

By Jessica Alling – Jun 5, 2013 at 5:51PM

NYSE: BAC

Bank of America

Market Cap

$302B

Today's Change

(1.70%) $0.64

Current Price

$38.37

Price as of April 23, 2024, 4:00 p.m. ET

With old legal battles coming back to haunt it, the bank may be facing some big headwinds.

Bank of America (BAC 1.70%) recently reentered the courtrooms to settle a legal dispute that it had thought was already resolved. Brought back to life, the case revolves around 22 investors and an $8.5 billion settlement deal that some say is too small for the matter at hand. Leading the charge against approval of the settlement is AIG (AIG -0.04%), which has some new evidence that may sway the judge to its side.

In the video below, Motley Fool contributor Jessica Alling discusses the case, AIG's evidence, and what it means for the bank and its investors.

Fool contributor Jessica Alling has no position in any stocks mentioned -- you can contact her here. The Motley Fool recommends and owns shares of AIG. It owns shares of Bank of America and has the following options: long Jan. 2014 $25 calls on AIG. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.