Merrill Lynch & Co. Inc. has entered into a proposed settlement of a class action filed in 2007 by the firms employees over losses on its stock. The New York-based company will pay $75 million in cash to settle the litigation.
The suit, brought under the Employee Retirement Income Security Act, claimed that Merrill didnt adequately disclose subprime-related losses that affected its saving and investment plan, its retirement accumulation plan and its employee stock ownership plan.
The US District Court for the Southern District of New York must approve the deal, which was reached Friday.
The claims didnt involve deferred compensation plans for brokers.Full article is available at the Investment News web-site.
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