Bank Sues Merrill Over Auction Rate Securities

Law360, New York (December 10, 2008, 12:00 AM EST) -- A Massachusetts bank has sued Merrill Lynch & Co. Inc. and another investment company, accusing them of negligent misrepresentation in connection with the sale of $3.5 million worth of auction rate securities prior to the collapse of that market.

The lawsuit, filed Tuesday by The Cooperative Bank and a subsidiary in the U.S. District Court for the District of Massachusetts, also names Pennsylvania-based BNK Asset Management Partners Inc. as a defendant.

The suit stems from transactions in which the plaintiffs bought the securities in December 2007...
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