Bank of America Corp. is facing a shareholder lawsuit that claims the company played a major role in a suspected case of investor fraud involving a client.

The lawsuit, filed Thursday in U.S. District Court for the Southern District of New York on behalf of Agape World Inc. investment clients, alleges that the $2.5 trillion-asset Charlotte company "failed to respond to the illegitimacy and unlawful nature" of Agape's business activities. The lawsuit, which was filed by the New York law firm Zamansky & Associates, asserts that B of A had an employee working in Agape's headquarters building and that it allowed the client to commingle funds it received from investors.

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