Merrill Investors Win Cert. In Suit Over $16.5B In MBS

Law360, New York (June 16, 2011, 6:34 PM EDT) -- A New York federal judge on Wednesday certified a class in a suit brought by institutional investors who claim Merrill Lynch & Co. Inc. sold them $16.5 billion of mortgage-backed securities that proved to be made up of bundles of bad loans.

Overruling Merrill's arguments against certification, U.S. District Judge Jed Rakoff gave a class of investors who bought several Merrill-issued MBS the right to proceed as a group.

The decision to let the plaintiffs proceed en masse means Merrill will likely face at least a...
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