Merrill Sued Over Mortgage-Related Investments

Law360, New York (October 19, 2007, 12:00 AM EDT) -- Wireless service provider MetroPCS Communications Inc. has filed a lawsuit against Merrill Lynch & Co., alleging that the financial services firm improperly invested nearly $134 million of MetroPCS cash reserves by making unauthorized high-risk bets connected to the subprime mortgage market.

The lawsuit filed Thursday in the district court of Dallas County, Texas alleges that Merrill Lynch invested MetroPCS funds in high-risk investments contrary to MetroPCS' stated objective to keep assets in low-risk, highly liquid investments that would primarily preserve the company's capital.

Instead, MetroPCS claims,...
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