LAWSUITS NEWS & LEGAL INFORMATION
Unauthorized Investments
Boston, MA: (Jan-31-08) The city of Springfield brought a securities lawsuit against Merrill Lynch & Co., alleging that the company made investments that they were not authorized to make. State regulators began investigations after a review showed that Springfield officials never gave explicit permission to invest in the securities, many of which were related to the troubled subprime mortgage market. Sources stated that Merrill Lynch had previously said Springfield officials reviewed, approved and authorized all of the investments.
The parties reached a settlement agreement, which was mediated by Attorney General Martha Coakley and Secretary of State William Galvin, who began the probes on the investments. Records stated that the state auditor also launched a review of the city's cash management policies. Under the deal, Merrill Lynch & Co. will reimburse the city of Springfield $13.9 million, resolving the lawsuit. Following the settlement, the investments, worth $14 million in 2007, have since dropped to $1.2 million. [BUSINESS WEEK: UNAUTHORIZED INVESTMENTS]
Published on Feb-3-08
The parties reached a settlement agreement, which was mediated by Attorney General Martha Coakley and Secretary of State William Galvin, who began the probes on the investments. Records stated that the state auditor also launched a review of the city's cash management policies. Under the deal, Merrill Lynch & Co. will reimburse the city of Springfield $13.9 million, resolving the lawsuit. Following the settlement, the investments, worth $14 million in 2007, have since dropped to $1.2 million. [
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