On August 24, 2009, the US District Court for the Southern District of New York preliminarily approved a $150 million settlement of a subprime-related securities class action pending against Merrill Lynch and several of its directors and officers styled, Louisiana Sheriff's Pension and Relief Fund v. Conway et al. A copy of the order preliminarily approving the settlement can be found here. The lawsuit was settled while the motion to dismiss was pending.
Filed on October 3, 2008, the plaintiffs asserted claims for relief under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of investors in certain Merrill Lynch debt securities and a series of Merrill Lynch preferred stock. The complaint alleged that Merrill Lynch failed to disclose the existence and the value of tens of billions of dollar of complex derivative securities linked to subprime mortgages on its balance sheet.
In early 2009, Merrill Lynch reportedly settled a subprime-related securities class action alleging Exchange Act violations for $475 million and also settled a subprime- related ERISA action for $75 million.