ConDig (07-Jun–17).  Tutor Perini Corp (TPC) has received $37 million from Bank of America Corp (BofA) to resolve a lawsuit following claims the bank defrauded the Los Angeles, California-based civil and building construction company by selling it millions of dollars of auction-rate securities it knew were on the verge of failing.

TPC said in a filing with the US Securities and Exchange Commission that the pending legal action, which was filed against the bank in 2011, had now been dismissed.

It added that, under the agreement, neither party made any admission of liability or wrongdoing.

The case was scheduled to go to trial later this month, but the two companies reported late last month that they had reached an agreement, although terms of the deal were not disclosed at that time.

TPC said it is set to report the settlement as a gain in the second quarter of this year and will update its full-year earnings guidance, if appropriate.

The case centered on allegations that BofA encouraged TPC to buy auction-rate securities in late 2007 and early 2008 despite knowing the market was close to becoming illiquid.

The $330 billion auction-rate market froze up in early 2008 when sellers outnumbered buyers and the auctions began to fail, which landed investors with illiquid debts.

Last month, TPC said its subsidiary Tutor-Saliba Corp had successfully defended an appeal case related to a legal wrangle with developer Westgate Planet Hollywood.

The company said that the Supreme Court of Nevada backed the state’s lower court judgment and expects to receive a final award in excess of $20 million, including interest and recovery of certain attorneys’ fees and costs.