Disclosures by Merrill Lynch that it routinely intervened to place support bids in the market for auction rate securities is sufficient to avoid liability under the Securities Exchange Act of 1934, the U.S. Court of Appeals for the Second Circuit ruled yesterday.
Against the opinion of the Securities and Exchange Commission, the circuit said that disclosures made by Merrill, partly to comply with a previous settlement with the SEC, put investors on notice that Merrill sometimes, but not always, placed bids to ensure the market for the securities would not fail.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
