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,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.