Merrill Lynch settles 23 class action lawsuits

02/18/06 - newratings.com

NEW YORK, February 18 (newratings.com) – Merrill Lynch & Co Inc (MER) Friday said in its regulatory filing that it would pay $164 million to settle 23 class action lawsuits related to its analysts' activities and research coverage of Internet companies during the boom and bust of the dot-com era.

The settlements are subject to further negotiations on the terms and conditions, and is yet to be approved by the courts, Merrill Lynch said in its report filed with the US Securities and Exchange Commission (SEC). The plaintiffs alleged that Merrill Lynch had issued overwhelmingly positive research on Internet companies in a bid to get investment banking business from the companies that were being researched and written about. Merrill Lynch said it will book $170 million in litigation-related expenses in the fourth quarter, which would dilute the quarter's EPS by $0.10.