Not my problem anymore, Brian.When he's not wreaking havoc on the Raj Rajaratnam trials, U.S. District Judge Jed Rakoff is giving newly-minted Charlotte-booster Brian Moynihan a headache.
Seems that you can't call "experts" whose sole source of information are media reports you told your investors to ignore.
In effect the bank is arguing that, even though it expressly warned its shareholders to disregard the media, it can now defend itself by asserting that a reasonable shareholder would have disregarded these warnings and, by consulting the media, perceived that the bank's alleged lies were immaterial. Even a zealous advocate might perceive that such an argument hints at hypocrisy.
The enfant terrible of Foley Square had already quashed a proposed settlement between the government and BofA over the latter's "alleged lies" about billions in bonuses allegedly promised to Merrill Lynch employees.
Judge Excludes Some Expert Witness Testimony In BofA-SEC Case [DJN]
US judge bars media bonus reports in SEC/BofA case [Reuters]