Bloomberg News

Merrill Lynch Sued Over Collateralized Debt Obligations

October 05, 2011

(Updates with excerpt from complaint starting in second paragraph.)

Oct. 5 (Bloomberg) -- Bank of America Corp.’s Merrill Lynch unit was sued in New York by Loreley Financing over alleged misrepresentations involving $92 million worth of collateralized debt obligations.

The suit stems from Loreley’s purchase of classes of notes issued in connection with two collateralized debt obligations, according to a complaint filed today in New York State Supreme Court in Manhattan.

“Defendants made material misrepresentations to plaintiffs, omitted material facts, conspired to defraud plaintiffs, were responsible for fraudulent conveyances, aided and abetted others’ fraud and fraudulent conveyances,” Lorely said in the complaint.

William Halldin, a spokesman for Charlotte, North Carolina- based Bank of America, said the company believes “there is no merit to the claims” and plans to defend itself in court.

The case is Loreley Financing (Jersey) No. 3 Ltd. v. Merrill Lynch, 652732/2011, New York State Supreme Court, (Manhattan).

--Editors: Fred Strasser, Andrew Dunn

To contact the reporter on this story: Chris Dolmetsch in New York at cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus