2nd Circ. Kills Investor's $26M Merrill Lynch ARS Suit

Law360, New York (March 19, 2013, 4:51 PM EDT) -- Claims that Merrill Lynch & Co. lied to investors about the liquidity of $26 million in auction rate securities it sold are not strong enough to sustain cellular service provider Cellular South Inc.'s fraud lawsuit against the investment bank, the Second Circuit said Tuesday.

A panel of three appeals court judges tossed a lawsuit claiming that Merrill, now a unit of Bank of America Corp., lied about how easily investors could sell their ARS in a bid to unload its own holdings before the market froze...
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