Law360, New York (May 07, 2012, 6:58 PM ET) -- A Delaware judge dismissed allegations Friday that BlackRock Inc. and Merrill Lynch & Co. Inc. strong-armed an investment fund into paying $462 million to buy back auction-rate securities, ruling the claims by the fund's shareholders were derivative and unspecific.
Vice Chancellor Sam Glasscock III ruled that the allegations by the fund's shareholders were derivative, but that the fund's decision to redeem auction-rate securities it had issued at par didn't rise to the level of corporate waste necessary to sustain the complaint.
The vice chancellor likened the...
BlackRock, Merrill Lynch Escape Shareholders' ARS Suit
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