Merrill Lynch wins bond case

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Bank of America’s Merrill Lynch units won a case on appeal to Japan’s highest court against a ruling that they must pay damages to failed consumer lender Takefuji Corp. for their role in a bond transaction.

Bloomberg News reports that the Supreme Court of Japan overturned the high court decision that Merrill Lynch International and Merrill Lynch Japan Securities must pay $128m in compensation to Takefuji. The Tokyo High Court made the ruling in August 2014, overturning a district court judgment made in 2013.

Takefuji sued Merrill Lynch in April 2010 for about $256.6m arguing the brokerage failed to sufficiently explain the risks in the transaction, which was designed to lower the consumer lender’s interest costs. The deal involved Takefuji investing $265.5m in a credit-linked security that was later liquidated as the securities backing it slumped.

Bank of America acquired Merrill Lynch in 2009. Takefuji went bankrupt in September 2010.

To access the complete Bloomberg News article hit the link below:

BofA's Merrill Wins Takefuji Case on Appeal to Japan's Top Court

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