Dow Corning Smacks BB&T With ARS Suit

Law360, New York (November 6, 2009, 6:24 PM EST) -- Silicone supplier Dow Corning Corp., which is holding $667 million in auction rate securities that it cannot sell, has brought litigation that accuses BB&T Corp. of making false statements about the safety and liquidity of that investment.

In a complaint filed Wednesday with the U.S. District Court for the District of New Jersey, Dow Corning alleged that BB&T — and particularly broker Jeff Boyd, who worked at the bank's subsidiary Scott & Stringfellow LLC — touted the benefits of auction rate securities even as it knew...
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