Merrill Lynch Ends Investor and Employee Class Action Lawsuits with $550 Million Settlement
Last month, Merrill Lynch & Co. reached a $550 million settlement with investors and employees over losses related to investments in subprime mortgage-backed assets. A court must approve the proposed settlements.
In the securities class action case, the plaintiffs have accused Merrill Lynch of using statements on collateralized debt obligations and other assets to inflate the market price of its own shares. As a result, the plaintiffs contend, investors lost money.
The Ohio State Teachers Retirement System is the lead plaintiff in the class action lawsuit, which represents investors who bought preferred shares between October 17, 2007 and December 31, 2008. The agreed upon settlement is $475 million in cash.
Plaintiffs of the Employee Retirement Income Security Act class action have agreed to settle for $75 million in cash. Participants in the ERISA lawsuit are Merrill Lynch employees with Merrill Lynch stock in specific retirement plans. The plaintiffs have accused Merrill of failing to adequately reveal subprime-related losses that impacted its retirement accumulation plan, its savings and investment plan, and its employee stock ownership plan.
By agreeing to settle, Merrill Lynch says it is not admitting to any wrongdoing.
Fallout from the Subprime Mortgage Crisis
The subprime mortgage crisis has resulted in millions of dollars in losses for investors. If you believe that you were a victim of investor fraud or broker dealer misrepresentation and that these inappropriate actions caused you to sustain investor losses, you may be entitled to the recovery of those losses.
Related Web Resources:
Merrill Lynch settles subprime lawsuit, Business Insurance, January 20, 2009
Merrill settles employee class action for $75M, Investment News, January 19, 2009
Ohio announces $475M Merrill Lynch settlement, Forbes.com, January 16, 2009
Contact our stockbroker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP today.
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