Merrill's ARS Disclosures Doom Investor Fraud Suit

Law360, New York (June 5, 2012, 6:31 PM EDT) -- A New York federal judge on Monday tossed claims from multidistrict litigation alleging Merrill Lynch & Co. Inc. duped a clothing brand licenser into purchasing $13 million worth of ultimately worthless auction-rate securities, ruling that the bank had properly disclosed the risk of the assets before the sale.

Iconix Brand Inc., which licenses brands such as Mossimo and Joe Boxer to major retailers, should have known that the $100 million it invested with the bank in 2007, including $13 million in the ultimately worthless ARS, was...
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