Jury finds Merrill liable for $6 million

A jury in Florida has ordered Merrill Lynch & Co. Inc. to pay $6 million for taking advantage of the late New Jersey philanthropist George Rothman and his wife.
C. Wade Bowden, a lawyer representing the Rothmans’ two daughters, said that the New York-based financial services giant took advantage of the couple’s deteriorating mental condition to move their money into investments that would pay higher commissions, according to an Associated Press report.
The suit also claims that Merrill broker Karen L. McKinley falsely told Mr. Rothman in three letters that the investments carried no fees or sales commissions.
Mr. Bowden said that the company made at least $2.5 million in fees on the Rothmans’ $32 million investment in variable annuities, while Ms. McKinley made about $600,000.
Merrill will seek to have the Oct. 1 verdict set aside, said Merrill spokesman Mark Herr, and will appeal if it stands.
“The verdict is astonishing in light of the undisputed fact that the Rothmans, who were wealthy, sophisticated investors, made $10 million on the annuities at issue, and did not lose money,” Mr. Herr said.
“The verdict is unjustified by the facts and law.”
A jury in Palm Beach, Fla. must still determine whether punitive damages should be awarded.