Merrill settles class action for $15 million

In 2002, the firm also agreed to pay $100 million and reform its investment-counseling practices.

A Federal Judge has approved a $15 million settlement of class-action claims against Merrill Lynch & Co. Inc.
Plaintiffs claimed that Merrill Lynch stock took hits after the New York attorney general’s investigation into allegedly false or misleading research reports on Internet companies became public in April 2002, leading to a drop in the company’s stock price, according to the Dow Jones Newswires
In an order dated Dec. 19, U.S. District Judge John F. Keenan gave final approval and certified the class in the case.
Merrill Lynch agreed to pay $100 million and reform its investment-counseling practices as part of a separate settlement with Eliot Spitzer, who was the New York State Attorney General at the time.
The stipulation of settlement in the Merrill Lynch shareholders’ case provides for a cash payment of $15 million plus interest.
A Merrill Lynch spokesman declined to comment in the Dow Jones Newswires report.