Group of Investors To Sue Merrill Lynch
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
A group of investors is suing Merrill Lynch, claiming the brokerage firm falsely reported its business and financial results and that stocks were traded at artificially high prices as a result, according to a lawsuit filed yesterday in U.S. District Court in Manhattan.
The lawsuit comes a week after the brokerage house admitted to losing $2.24 billion in the third quarter following the subprime mortgage turmoil, marking its biggest quarterly loss since the company was founded 93 years ago. Yesterday, the chief executive officer, Stanley O’Neal, announced his retirement.
Mr. O’Neal and three other top executives are named in the suit, which seeks class-action status for all shareholders who purchased stock between February and October of this year.
