FINRA Orders Merrill To Pay $63.7M To Hedge Funds

Law360, New York (July 6, 2011, 10:07 PM EDT) -- The Financial Industry Regulatory Authority on Tuesday ordered Bank of America NA's Merrill Lynch unit to pay $63.7 million to two hedge funds that claimed the bank breached a contract and defrauded them.

The decision is a significant win for Rosen Capital Partners LP and Rosen Capital Institutional LP, which had initially sought $90 million from Merrill. Beyond the $63.7 million, the Rosen funds will get interest at a rate of 9 percent per annum backdated to October 2008 — or about $15 million — plus...
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