Merrill Lynch, Others Still On The Hook For GMX Class Action

Law360, New York (September 16, 2013, 8:40 PM EDT) -- An Oklahoma federal judge Monday denied a bid to dismiss a proposed class action against bankrupt GMX Resource Inc.’s underwriters, including Merrill Lynch, finding that they aided in certain securities sales and therefore could potentially be liable for any alleged misrepresentations of the oil and gas producer’s financial health.

U.S. District Court Judge Timothy D. DeGiusti rejected a motion to dismiss the proposed class action, finding that plaintiffs adequately alleged securities fraud claims against the underwriters and some of GMX’s leaders, including CEO Ken Kenworthy Jr.,...
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