Bank of America Corp. is expected to clear a legal hurdle that tripped up Citigroup Inc. last week and has propelled it toward a risky day in court.

B of A, based in Charlotte, N.C., agreed late Monday to pay $315 million to settle a class action suit alleging that its Merrill Lynch unit made false and misleading statements about the quality of mortgage-backed securities it sold to investors.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.