Dow Corning Sues Merrill Over $166M In Failed ARS

Law360, New York (November 23, 2009, 5:47 PM EST) -- Dow Corning Corp. has reportedly filed a lawsuit against Merrill Lynch & Co. that alleges the firm duped the silicone maker into purchasing $166 million in failed auction rate securities.

The lawsuit, filed Friday in the U.S. District Court for the Southern District of New York, accuses Merrill of misleading the Midland, Mich.-based company about the safety and liquidity of the ARS market, according to a Reuters report.

The complaint alleges that Dow Corning bought ARS from Merrill from 2005 to Feb. 13, 2008, when the...
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