Credit Suisse Ordered To Pay $354M Over ARS

Law360, New York (March 24, 2010, 3:05 PM EDT) -- A federal judge has decided that Credit Suisse Securities (USA) must pay $354 million over claims that it purchased auction rate securities without STMicroelectronics NV's authorization, affirming an arbitration award the judge says Credit Suisse has “grasped at straws” to avoid.

Judge Deborah A. Batts of the U.S. District Court for the Southern District of New York confirmed Friday the Financial Industry Regulatory Authority's February 2009 arbitration award for STMicroelectronics.

FINRA initially awarded STMicroelectronics $431 million including collected interest, according to the Swiss semiconductor maker. STMicroelectronics...
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