ARS Buyers Bow Out Of Royal Bank Of Canada Suit

Law360, New York (June 2, 2009, 12:00 AM EDT) -- A putative class of thousands of investors who purchased auction rate securities has dropped a suit against the Royal Bank of Canada, after agreeing to allow RBC to compensate them for losses on illiquid ARS investments as part of the bank’s October 2008 settlement with the U.S. Securities and Exchange Commission.

The investors, who filed suit against RBC in 2008 on behalf of anyone who purchased the securities through RBC between May 2003 and February 2008, agreed to a voluntary dismissal of the suit on Friday,...
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