Teva Sues Merrill Over ARS Gone Bad

Law360, New York (August 6, 2009, 7:00 PM EDT) -- Teva Pharmaceutical Industries Ltd. has initiated litigation alleging that it suffered “staggering losses” after purchasing about $273 million in auction rate securities that were underwritten by Merrill Lynch & Co. Inc.

According to a complaint filed Wednesday in the U.S. District Court for the Southern District of New York, Merrill Lynch made material omissions about the nature and characteristics of the auction rate securities and about the manner in which the auction process functioned.

Teva, which bought the securities from January 2005 to August 2007, said...
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