BB&T Broker Loses Bid To Toss Fraud Suit Over ARS

Law360, New York (November 24, 2010, 1:41 PM EST) -- A broker-dealer owned by BB&T Corp. has failed to dismiss a lawsuit alleging it covered up the failing auction rate securities market in 2007 and 2008, though a federal judge did agree to throw out claims against the parent company for now.

Judge Faith S. Hochberg of the U.S. District Court for the District of New Jersey issued the ruling Tuesday, saying the plaintiffs, Dow Corning Corp. and Hemlock Semiconductor Corp., could not show that BB&T was responsible for the alleged wrongdoing. She allowed the plaintiffs...
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