Texas Instruments Sues Brokers Over $524M In ARS

Law360, New York (April 6, 2009, 12:00 AM EDT) -- Texas Instruments Inc. has launched a suit against three major broker-dealers alleging they duped the company into investing $524 million in failed auction rate securities.

The semiconductor maker filed a complaint in a Texas state court in Dallas County on Wednesday, accusing Citigroup Global Markets Inc., BNY Capital Markets Inc. and Morgan Stanley & Co. Inc. of misrepresenting the safety of ARS and manipulating the market for the risky bonds.

Dallas-based Texas Instruments follows a long line of investors who have pursued the financial services industry...
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