Judge OKs settlement of suit

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Wednesday, Oct. 2, 2002 | 11:10 a.m.

ST. LOUIS -- A federal judge has approved the $490 million settlement of a class-action lawsuit filed over the merger that created the new Bank of America Corp. four years ago.

The settlement, which was announced in February but only made official Monday, provides for payment of $333.2 million to NationsBank shareholders and $156.8 million to former BankAmerica shareholders. The lawsuit had alleged that executives at both banks failed to disclose financial problems at BankAmerica -- the second-largest bank in Nevada -- prior to merging in 1998.

Bank of America, which maintains the merger was conducted properly and that it only settled to get the issue behind it, said the payments will come from existing reserves and insurance and will not affect the bank's financial results.