Merrill Lynch Settles $75M Lawsuit

Bank of America Corp-owned Merrill Lynch & Co announced today that they have agreed to pay $75 million to settle a class-action lawsuit against the company. The plaintiffs were employees who had lost money by investing in Merrill Lynch stock through their retirement places.

In their lawsuit, which was filed in November 2007, the plaintiffs said that the company violated the Employee Retirement Income Security Act. They say that Merrill Lynch offered stock as part of their retirement plans even when it was “imprudent” to do so, given the company’s debt. The lawsuit helps employees who invested money from September 2006 to December 2008, during which time the stock lost over 80% of its value.

Records show that the parties entered a settlement at the end of February, with federal judge endorsement in March. The plaintiffs announced the settlement today, though Merrill Lynch declined to comment. Bank of America acquired Merrill Lynch in January after the company posted a $15.84 billion loss in the fourth quarter of 2008.

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