Wednesday, July 29, 2009

NJ sues Merrill Lynch over $300 mln stock purchase

NEW YORK, July 28 (Reuters) - New Jersey sued Merrill Lynch for selling its pensions $300 million of preferred stock in January 2008 "based on misleading information" about the brokerage's finances, the state attorney general said on Tuesday.

Anne Milgram, the state attorney general, said in a statement that the lawsuit, filed in the Law Division of state Superior Court in Hudson County, also names Bank of America Corp as a defendant.

Bank of America acquired Merrill Lynch last year and is named as "a successor entity," Milgram said.

1 comment:

Anonymous said...

When will our Town Councils wakeup and do the right thing.

If TC's didn't understand the risk, then they were cheated basically and something should be done about it! Doing nothing is being irresponsible!

If they understood the risk, then how could they played with public fund so irresponsibly? Someone should be answerable for this and not simply say "let's move on"! TC has no right to say that they accept the loses, because that's not their money, the money belong to the residents; not the TC's who are just the custodian!

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