A Bank of America shareholder sued the bank for its failure to disclose a potential $10 billion liability - to giant insurer American International Group, in connection with mortgage-backed securities. The liability arose from a lawsuit filed by AIG, which suffered losses of more than $10bn on $28 billion worth of RMBS securities that AIG purchased between 2005 and 2007 from Countrywide Financial Corp and Merrill Lynch, and their subsidiaries - companies that Bank of America acquired after the relevant period. The shareholder lawsuit, filed in U.S. District Court in Manhattan, seeks class action status on behalf of purchasers of Bank of America stock between February 25, 2011 and August 5, 2011.  It his complaint, the shareholder states that: "Throughout the class period, defendants repeatedly informed investors about the claims of other entities for RMBS losses but not about the massive losses suffered by AIG."   The court document said that shareholders incurred losses on August 8 - Bank of America shares plunged over 20% to $6.51, from $8.17 a share - after the market learned that AIG sued BofA in New York state court seeking to recover the RMBS losses.  "This decrease was a result of the artificial inflation caused by the defendants' misleading statements coming out of the price," the lawsuit said. In a footnote, the court document adds that the plaintiff, shareholder David Lawrence, "asserts only that BofA should have disclosed AIG's losses and potential claims to investors and takes no position on whether those claims will ultimately be found to have merit." Mr. Lawrence asks the court to declare the lawsuit a class action under anti-fraud provisions of federal securities law and seeks unspecified damages for all members of the class.   [Reuters, 9/23/11]