11th Circ. Sides With BofA In Prime Broker Case

Law360, New York (March 29, 2010, 5:31 PM EDT) -- The U.S. Court of Appeals for the Eleventh Circuit has ruled in favor of Banc of America Securities LLC, finding the investment bank owed no fiduciary duty to a company that invested in one of Florida's largest securities frauds, and further clarifying the legal liability of prime brokers.

Upholding a lower court ruling, the Eleventh Circuit found that a prime broker margin account agreement obligated Banc of America to perform only the “ministerial” function of a prime broker for SFM Holdings Ltd., which lost over $12...
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