Bank of America (NYSE:BAC) Sued Over Faulty Lending Practices

The lawsuits keep on coming for the giant banks, and the latest has been filed against Bank of America (NYSE:BAC) by the benefit plan of a local union, alleging faulty lending practices led to a drop in the share price of the company.

According to the lawsuit, which is seeking class action status, Bank of America didn't have enough workers to process the large amount of foreclosures it had to deal with. The suit also alleges the bank hid billions of dollars in debt it had incurred.

The benefit plan of the local union acquired about 25,000 shares of Bank of America in 2010 at $19 each, and after announcing they were being investigated, the giant bank's share price plunged to as low as 69 cents a share.

At the time BofA had to postpone the pending foreclosures during the process.

The suit hopes to represent all investors who purchased stock from the bank from January through October 2010.

Bank of America was trading at $14.22, down $0.21, or 1.46 percent, as of 11:53 AM EST.