Merrill Lynch Pares $26M ARS Fraud Suit From MDL

Law360, New York (August 14, 2012, 6:58 PM EDT) -- A New York federal judge on Monday cut Cellular South Inc.'s $26 million fraud suit from wider multidistrict litigation against Merrill Lynch & Co. Inc., ruling Cellular South had failed to prove any of its claims over the auction rate securities the bank had sold it.

U.S. District Judge Loretta A. Preska granted Merrill’s motion to dismiss the suit, saying the cellphone service provider’s claims were precluded by clear statements on Merrill’s website that ARS auction failures were possible.

Those statements were posted in 2006, before...
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