Merrill Lynch ARS Class Action Thrown Out

Law360, New York (April 1, 2010, 1:38 PM EDT) -- A federal judge has dismissed an investor class action against Merrill Lynch & Co. over auction rate securities, finding that the investment bank provided enough disclosure about the functioning of the market.

Judge Loretta A. Preska, the chief judge of the U.S. District Court for the Southern District of New York, ruled Wednesday that Merrill Lynch informed investors on its Web site and through ARS prospectuses that it would at times prop up floundering auctions, rendering the investors' reliance claims inoperable.

Judge Preska also pointed to...
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