2nd Circ. Downs Credit Suisse Appeal Of $431M Award

Law360, New York (June 2, 2011, 4:11 PM EDT) -- The Second Circuit refused Thursday to wipe out a $431 million arbitration award given to STMicroelectronics NV in its contract fight with Credit Suisse Securities (USA) LLC over auction rate securities.

A three-judge panel said Credit Suisse had failed to show that the arbitrators from the Financial Industry Regulatory Authority acted inappropriately when they ruled against the banking firm. Credit Suisse sparked the dispute in 2008 with its decision to purchase risky ARS rather than the federally guaranteed student loan securities specifically authorized by STMicroelectronics....
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