Merrill Lynch Loses Challenge To Funds' $64M Fraud Award

Law360, New York (February 5, 2013, 11:15 PM EST) -- A California appeals panel found Tuesday that the Financial Industry Regulatory Authority did not overstep its authority in granting a $64 million arbitration award to two hedge funds that claimed Bank of America NA's Merrill Lynch unit had defrauded them when acting as a broker for funds they managed.

The FINRA panel did not overreach when it handed hedge funds Rosen Capital Partners LP and Rosen Capital Institutional LP the July 2011 award, because it made the decision based on adequate testimony by the hedge funds'...
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