ARS Action Against Failed Student Lender Tossed

Law360, New York (February 17, 2011, 6:49 PM EST) -- A federal judge on Thursday dismissed a class action against executives of defunct student lender MRU Holdings Inc., finding that the executives and MRU's underwriters properly disclosed the risks of auction rate securities prior to the market and the lender's collapse.

Judge Richard M. Berman of the U.S. District Court for the Southern District of New York ruled that the executives and investment bank Merrill Lynch & Co. Inc. provided sufficient information regarding the risks of the ARS market, which MRU used to securitize student loans,...
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