Kazerouni Law Group, APC And Hyde & Swigart File Class Action Regarding Merrill Lynch's Misrepresentations Involving Client Reserve Account
SAN DIEGO, Sept. 7, 2018 /PRNewswire/ -- The Kazerouni Law Group, APC and Hyde & Swigart today announced that a class action has been commenced on behalf of United States persons whose securities and/or cash were invested with Merrill Lynch between January 1, 2009 through December 31, 2012. This action was filed in the Southern District of California and is captioned James, Jiao et al. v. Merrill Lynch Pierce, Fenner & Smith, Inc. et al., No. 3:17-cv-00409 (https://www.kazlg.com/NOTICE-OF-SECURITIES-CLASS-ACTION-REGARDING-MERRILL-LYNCH-S-MISREPRESENTATIONS-INVOLVING-CLIENT-RESERVE-ACCOUNT.shtml).
If you wish to serve as lead plaintiff in this action, you must move the Court no later than 60 days from September 7, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Plaintiffs' counsel Abbas Kazerounian at (800) 400-6808, or [email protected].
You may view a copy of the filed Second Amended Complaint (the "Complaint") at https://www.kazlg.com/NOTICE-OF-SECURITIES-CLASS-ACTION-REGARDING-MERRILL-LYNCH-S-MISREPRESENTATIONS-INVOLVING-CLIENT-RESERVE-ACCOUNT.shtml. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint charges that Merrill Lynch, Pierce, Fenner & Smith, Inc. ("MLPF&S") and Merrill Lynch Professional Clearing Corp. ("MLPro") (together "Merrill Lynch") engaged in a scheme to defraud consumers by using client funds for Merrill Lynch's own business purposes from the Reserve Account required under Section 15(c)(3) of the Exchange Act – commonly referred to as the Consumer Protection Rule.
Merrill Lynch made false or misleading statements that Merrill Lynch would properly maintain the Reserve Account, such as representing in writing that Merrill Lynch would comply with the Consumer Protection Rule "through the use of segregated accounts for our clients' securities at the major depositories."
In actuality, Merrill Lynch initiated a formal policy of making Leveraged Conversion Trades to lower the amount of the Reserve Account and use funds therefrom to make substantial profits for its own business purposes, without compensating its clients for secret use of their funds.
Accordingly, Plaintiffs seek to recover a risk premium that Merrill Lynch did not pay to Plaintiffs or the members of the putative class when Merrill Lynch involuntary used funds of the Plaintiffs' or the putative class members.
The two named Plaintiffs, James Jiao and Samuel Nunez, are represented by the two law firms Kazerouni Law Group, APC and Hyde & Swigart who have extensive experience in prosecuting class action on behalf of consumers. Please visit www.kazlg.com and www.westcoastlitigation.com for more information.
SOURCE Kazerouni Law Group, APC; Hyde & Swigart
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