Merrill Dodges Securities Misrepresentation Suit

Law360, New York (August 24, 2009, 6:00 PM EDT) -- Merrill Lynch & Co. has won the dismissal of a lawsuit brought by Luminent Mortgage Capital and other real estate investment trusts alleging Merrill made material misrepresentations about the mortgage-backed securities it sold.

In a ruling passed down Thursday, Judge Barclay Surrick of the U.S. Distict Court for the Eastern District of Pennsylvania said Luminent had failed to prove that Merrill recklessly misrepresented the state of the mortgage-backed securities it sold the company

The judge said the complaint was “silent as to how the loss [alleged...
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