Merrill Disclosures Don't Bar ARS Claims: SEC To 2nd Circ.

Law360, New York (June 28, 2011, 3:46 PM EDT) -- The U.S. Securities and Exchange Commission told the Second Circuit on Friday that Merrill Lynch & Co. Inc.'s disclosures about its dealings in the auction rate securities market should not bar putative class claims against the company over ARS losses.

In an amicus curiae brief requested by the appeals court, the SEC said that Merrill Lynch's disclosures are not sufficient as a matter of law to preclude investor plaintiff Colin Wilson's claim of market manipulation or to block Wilson from pleading that he justifiably relied on...
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