No way this will stand up legally.

Who is losing out in this situation? I think many of us have seen enough usability tests to know that a 404 could stop a user dead in their tracks. Instead, though, we have a proper site suggestion that is clear and directs the user where they meant to go. If BofA was really upset at all this, they could take it up with site owners, or stop buying into Google's ads, but they know better.

Aside: It's pretty depressing that Harvard professors are spending research money on things like typo-squatting and publishing papers on it.