NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission is looking to bring additional charges against Bank of America, representing the latest twist in a protracted battle over outsized bonuses paid to Merrill Lynch employees.
In court documents made public Monday, the SEC asked a federal judge for permission to charge the company with failing to alert investors about the potential losses at Merrill Lynch ahead of a shareholder meeting and vote on the deal.
"Bank of America kept shareholders in the dark as they were called upon to vote on the proposed merger," the SEC wrote in its letter to U.S. District Court Judge Jed Rakoff, who is overseeing the case.
Bank of America (BAC, Fortune 500) was already gearing up for a potentially lengthy court battle over charges that it allegedly lied in its proxy statement, telling shareholders it would not pay out bonuses paid to Merrill employees in fiscal year 2008.
Later on, it came to light that the Charlotte, N.C.-based lender paid out a total of $3.6 billion to Merrill employees that year. Bank of America had originally worked out a $33 million settlement with the SEC over the matter, but Rakoff threw out the agreement, setting the stage for a trial.
Bank of America characterized the SEC's new claim as having no legal basis, adding that addressing the new charge would delay its effort to defend itself.
"We are disappointed that more than two months after the court-imposed deadline to amend its complaint and in the absence of any new information, the SEC now at the 11th hour is nevertheless trying to add new charges," the company said in a statement.
Bank of America and the SEC are scheduled to meet to discuss the matter with Rakoff Monday evening, although it is not clear whether he will rule on the SEC's request. The trial is slated to begin on March 1.
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