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BofA pays construction company $37M to settle securities-related suit

Bank of America Corp. paid Tutor Perini Corp. $37 million in cash to settle litigation filed by the construction company in 2011, related to its purchase of certain auction-rate securities from BofA, according to a Form 8-K filed by Tutor Perini.

Reuters reported June 6 that the lawsuit accused the bank of defrauding Tutor Perini by selling auction-rate securities the bank knew were about to collapse.

Neither party made any admission of liability or wrongdoing, according to the regulatory filing.

Specifically, Tutor Perini entered a settlement agreement with Merrill Lynch Pierce Fenner & Smith Inc. as successor in interest to Banc of America Securities LLC and Bank of America NA.