Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of Merrill Lynch & Co., Inc.
Market Wire, November, 2007
Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of an investor and other similarly situated purchasers of Merrill Lynch & Co. ("Merrill" or the "Company") (NYSE: MER) common stock between February 26, 2007 and October 23, 2007 (the "Class Period").
Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Merrill stock through your Merrill retirement account and have information or would like to learn more about these claims, please contact us.
The complaint charges Merrill and certain of its officers and directors with violations of the Exchange Act. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Merrill had gone heavily into Collateralized Debt Obligations ("CDOs") which generated higher yields in the short term but which would be devastating to the Company as the real estate market continued to soften and the risky loans led to losses. According to the complaint, Defendants knew or recklessly disregarded that: (i) the Company was more exposed to CDOs containing subprime debt than it disclosed; and (ii) the Company's Class Period statements were materially false due to their failure to inform the market of the ticking time bomb in the Company's CDO portfolio due to the deteriorating subprime mortgage market, which caused Merrill's portfolio to be impaired.
In early October 2007, Merrill acknowledged it would have to take a $5 billion third quarter 2007 charge for mortgage and credit problems. Then, on October 24, 2007, before the market opened, Merrill issued a press release which announced the third quarter charge would be $8 billion instead of $5 billion. On this news, Merrill's stock dropped from $67.12 per share to as low as $61.40 per share, closing at $63.22 per share on volume of 52 million shares. Subsequently, on October 25, 2007, S&P reduced Merrill's credit rating to negative after the brokerage reported the biggest quarterly loss in its 93-year history, causing Merrill's stock to dramatically drop to $60.90 per share.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Merrill common stock during the Class Period, which is between February 26, 2007 and October 23, 2007. If you purchased or otherwise acquired Merrill common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Merrill common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than 60 days from October 30, 2007.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com , by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com .
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
Contact: Tzivia Brody, Esq. Stull, Stull & Brody Email Contact toll-free 1-800-337-4983 fax at 212/490-2022 Stull, Stull & Brody 6 East 45th Street New York, NY 10017 www.ssbny.com .
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