{"id":5121,"date":"2011-03-08T00:00:00","date_gmt":"2011-03-08T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/03\/lawsuit_accusing_merrill_lynch"},"modified":"2022-04-04T12:55:45","modified_gmt":"2022-04-04T17:55:45","slug":"lawsuit-accusing-merrill-lynch","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/lawsuit-accusing-merrill-lynch\/","title":{"rendered":"Securities Lawsuit Accusing Merrill Lynch of Facilitating Sale of Mortgage-Backed Securities to King County, Washington Can Proceed, Says Court"},"content":{"rendered":"

The U.S. District Court for the Western District of Washington says that King County, Washington has pleaded sufficient facts to continue with its securities fraud lawsuit <\/a>accusing Merrill Lynch<\/a>, Merrill Lynch, Pierce, Fenner and Smith Inc.<\/a> and Merrill Lynch Money Markets Inc. of facilitating its purchase of allegedly toxic mortgage-backed securities and violating the Washington State Securities Act. The defendants had sought to dismiss the securities fraud complaint.<\/p>\n

Per the plaintiff, the defendants sold more than $100 million of the toxic assets to King County through the entities Mansail II and Victoria Finance in 2007. At the time, the county had wanted to make conservative investments. Not long after, Mansail failed and Victoria was downgraded to \u201cjunk\u201d and placed on negative credit watch.<\/p>\n

The county, claiming $60 million in losses, contends that the defendants played the role of seller or dealer of the commercial paper but did not fulfill its responsibility of ensuring there were sufficient procedures in place so that unwise investments were avoided and adequate warning of investment risks were provided. The county also contends that Merrill Lynch and its subsidiaries knew that the securities it was selling were toxic and had even made efforts to get rid of its MBS.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. District Court for the Western District of Washington says that King County, Washington has pleaded sufficient facts to continue with its securities fraud lawsuit accusing Merrill Lynch, Merrill Lynch, Pierce, Fenner and Smith Inc. and Merrill Lynch Money Markets Inc. of facilitating its purchase of allegedly toxic mortgage-backed securities and violating the Washington […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3800,3757],"tags":[],"class_list":["post-5121","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-merrill-lynch","category-mortgagebacked-securities"],"yoast_head":"\nSecurities Lawsuit Accusing Merrill Lynch of Facilitating Sale of Mortgage-Backed Securities to King County, Washington Can Proceed, Says Court — Investor 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