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http://www.bloomberg.com/apps/news?pid=71000001&refer=home&sid=awudx0BA1GNUFeb. 17 (Bloomberg) -- Merrill Lynch & Co., the world's largest securities firm, will pay $164 million to settle 23 investor lawsuits, ending most litigation over whether it issued misleading research on Internet companies.
New York-based Merrill said in a filing today with the U.S. Securities and Exchange Commission that two class action lawsuits remain active against the firm, one of which is before the U.S. Supreme Court.
``It was a long, hard, difficult negotiation,'' said Herbert Milstein, a partner in the Washington law firm Cohen Milstein Hausfeld & Toll, who represents shareholders. ``Merrill thought there was a risk, and we negotiated a settlement,'' he said, adding that the deal was reached late last night.
Merrill said in the SEC filing that the firm will record a $170 million litigation expense in its fourth-quarter 2005 financial results.
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Merrill, through its star technology analyst Henry Blodget and other researchers, issued reports urging investors to buy shares of Internet companies such as 24/7 Real Media Inc. and Interliant Inc. Investors claimed the analysts didn't believe the companies were good risks. Investors later filed lawsuits against Merrill, claiming they were misled and seeking damages.
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