2nd Circ. Says Merrill's ARS Disclosures Were Up To Snuff

Law360, New York (November 14, 2011, 3:33 PM EST) -- The Second Circuit on Monday ruled that Merrill Lynch & Co.'s disclosures regarding risks related to auction rate securities were adequate, upholding the dismissal of a class action complaint against the investment bank.

In a unanimous opinion, a three-judge panel rejected the plaintiffs' claims that Merrill failed to tell them they were placing so-called support bids in auctions, and without those bids the entire ARS market would fail. The lead plaintiff in the case, Colin Wilson, alleged that Merrill knew in August 2007 that the market...
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