Merrill Lynch Settles Securities Suits For $550M

Merrill Lynch Settles Securities Suits For $550M - 1/20/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Merrill Lynch Settles Securities Suits For $550M
Evan Weinberger

Securities Law 360. January 20, 2009
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EXCERPT: Merrill Lynch & Co. Inc. has agreed to a $550 million settlement with the Ohio State Teachers Retirement System and other plaintiffs alleging that the investment bank misrepresented and failed to disclose facts about its subprime mortgage debt exposure. News of the settlements in pending securities, Employee Retirement Income Security Act and derivatives suits came in Merrill Lynch's 8-K filing Friday with the U.S. Securities and Exchange Commission. Under the terms of the settlement, which is pending in the U.S. District Court for the Southern District of New York, Merrill Lynch will pay $475 million in cash to settle the Ohio State Teachers' claims, according to the 8-K filing. "We're still learning how far-reaching the fallout from the meltdown of subprime mortgages will be, but one thing is clear: Many Ohioans saw the value of their retirement savings take a nosedive as a result of improper practices on the part of the financial giants," Ohio Attorney General Richard Cordray said. "I'm encouraged that a portion of those losses will be restored through this proposed settlement, and it's fitting that our state and STRS Ohio would take the lead to ensure that alleged manipulation and misleading statements will not be tolerated." The investment bank, which became a unit of Bank of America Corp. at the beginning of the year, agreed to a $75 million settlement with a class of Merrill Lynch employees who invested in or held Merrill Lynch stock in their retirement portfolios between September 2006 and the end of 2008. According to its SEC filings, Merrill Lynch did not admit to any wrongdoing by agreeing to these settlements, and the investment bank noted that the merits of the case had not been adjudicated.

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