Comverse Targets Merrill Lynch Over $46M In ARS

Law360, New York (December 1, 2011, 9:43 PM EST) -- Comverse Technology Inc. on Wednesday sued Merrill Lynch & Co. Inc. alleging the financial firm misled the software company into buying $46 million worth of auction-rate securities by claiming they were safe and liquid investments.

Merrill Lynch, which acted as Comverse's broker-dealer and investment adviser, pushed the risky securities on the software company by claiming they fit in with Comverse's stated conservative investment policy, according to the complaint filed in New York state court.

But the investment bank never disclosed the extent to which its own...
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