Bank of America has held talks with lawyers for more than 1,000 former Merrill Lynch brokers that could lead to a settlement costing the bank hundreds of millions of dollars, according to people familiar with the matter.

The former Merrill brokers left the firm after the 2009 takeover by Bank of America and claim they are owed deferred compensation as a result of the deal. They were emboldened last month by an arbitration ruling ordering the Charlotte, North Carolina, company to pay more than $11m to two former brokers with related complaints.