NJ Court Won't Revive Broker-Dealers' Claims Against Merrill

Law360, New York (June 27, 2012, 6:06 PM EDT) -- A New Jersey appeals court on Wednesday refused to revive the third-party arbitration claims of securities broker-dealers against Merrill Lynch, saying that without a contract, the financial giant can't be dragged into arbitration with investors suing over an $8 million Ponzi scheme.

Cantone Research Inc., PNC Investments LLC and J.J.B. Hilliard, W.L. Lyons LLC sought to reverse a December 2010 lower court ruling denying the broker-dealers' motion to compel Merrill Lynch to share the blame for any liabilities arising from the investors' complaints. But in a...
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