MetroPCS sues Merrill over risky investment

MetroPCS is suing Merrill Lynch alleging that the broker invested $133.9 million of its cash in 10 auction-rate securities. Nine of the ten were issued by collateralized debt obligations, which were underwritten by Merrill. The suit charges Merrill with fraud, negligence and breach of fiduciary duty for making the risky investments.

"We believe the firm acted appropriately in its dealing with Metro PCS and made the relevant and necessary disclosures to them," Merrill said in a statement. It was "surprised" by the suit because it had been working "amicably with Metro late as last week."

For more on the suit:
- read this article from the WSJ (sub. req.)

Suggested Articles

FCC Chairman Ajit Pai spoke to major voice and broadband providers, including AT&T, T-Mobile, and Verizon for an update on network performance.

Meanwhile, multiple countries have now postponed planned 5G spectrum auctions.

Top in-flight connectivity trends that are fueling the business aviation market in 2020