CHICAGO, March 13 (UPI) -- CareerBuilder LLC is taking U.S. financial giant Bank of America to court to retrieve $32.5 million it invested in auction rate securities, court papers show.
The company filed the claim in Cook County Circuit Court in Chicago, claiming the bank assured it the assets were "safe, liquid, short-term investments," Crain's Chicago Business reported Friday.
CareerBuilder claims the bank was aware in 2007, soon after the company invested in the market, that the auction rate securities market was in trouble.
The company's attorney Jose Lopez said, "CareerBuilder has enjoyed a long relationship with Bank of America, and it is unfortunate that it has had to resort to litigation to get its money back, especially in light of action taken by federal and state regulators."
A precedent for the suit has been set, as the bank agreed to repurchase auction rate securities it sold to individuals and companies with accounts up to $15 million after a 2008 Securities and Exchange Commission investigation.
After the investigation, the bank denied any wrongdoing, but paid a $50 million fine based on the claims, Crain's reported.