An appeals court threw out two derivative suits over Merrill Lynch’s role in the financial crisis on Tuesday, allowing the company’s parent, Bank of America Corporation, to dodge at least one strain of Merrill-related litigation without resorting to a costly settlement.
In a 10-page summary order, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of two long-running cases against Merrill Lynch’s former officers and directors over their allegedly risky investments in collateralized debt obligations. The order is a win for BofA, which acquired Merrill in September 2008, and its lawyers at Skadden, Arps, Slate, Meagher & Flom.
