Merrill hit With Subprime Class Action
Wasting no time after the announcement of the billions of dollars in losses, and the resignation of Stan O'Neal, Reuters reports that a lawsuit has been filed against Merrill Lynch, contending that the company issued false and misleading statements about its exposure to risky mortgage investments. According to the article, the complaint accused Merrill of issuing materially false and misleading statements about its financial exposure to collateralized debt obligations (CDOS) containing subprime mortgage securities.
Adding insult to injury, the article says that Stan O'Neal has been named as a defendant also.
