Merrill Lynch stock-drop suit settled for $75 million

A federal judge gave final approval to a $75 million settlement between Merrill Lynch and employees who sued the New York-based brokerage house in 2007 to recover losses they sustained from holding Merrill company stock in their retirement plans.
AUG 27, 2009
A federal judge gave final approval to a $75 million settlement between Merrill Lynch and employees who sued the New York-based brokerage house in 2007 to recover losses they sustained from holding Merrill company stock in their retirement plans. Under terms of the deal, approved last week by Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York, Merrill Lynch & Co. Inc. has agreed to use the payout to reimburse employees in three retirement and savings plans who held Merrill stock between Sept. 30, 2006 and Dec. 31, 2008. The consolidated employee claims, brought under the Employee Retirement Income Security Act of 1974, alleged that executives and board members who oversaw the retirement plans knew Merrill was in trouble from collateralized debt obligations and subprime losses, but failed to make adequate disclosures to participants in its retirement plans. Merrill's retirement plans at one time held a total of $4.7 billion in company stock. The settlement is a good deal for the plaintiffs, said Marc Machiz, a partner at Cohen Milstein Sellers & Toll PLLC in Philadelphia, a co-lead plaintiff’s counsel in the case. “You need plenty of proof to win” an ERISA claim, he said. “The ability to win carries substantial risk, so we settled.” Merrill spokesman Bill Halldin declined to comment. The settlement does not involve any admission of wrongdoing by Merrill.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave