The class action complaint alleges that the fiduciaries of the Merrill Lynch Plans breached their duties of loyalty and prudence to Plan participants by authorizing the investment of Plan assets in Merrill Lynch stock when it was no longer a prudent investment due to massive losses the Company has suffered from subprime related securities.
On Oct 5, 2007 Merrill stated that its subprime related write-downs would be approximately $4.5 billion. However, the company has now disclosed write-downs totaling $23.2 billion as of December 28, 2007. Merrill Lynch's stock price dropped from $97.5 on January 24, 2007 to $48.17 on Jan 8, 2008, losing 50% of its value in less than one year. The fiduciaries of the Plans knew or should have known at least by January 18, 2007 that the Company's material weaknesses were so pervasive that Merrill Lynch stock could no longer be offered as a prudent investment for retirement Plans.
These class actions include all persons who were participants in or beneficiaries of the Plans at any time between January 18, 2007 and the present and whose accounts included investments in Merrill Lynch stock.
Name (Stock Symbol)
Merrill Lynch & Co. Inc.
Merrill Lynch & Co. Inc., a subsidiary of Bank of America Corporation, provides a range of financial services, including asset management, investment banking, and investment advisory services.
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