#Class Action #Merrill Lynch #Stock Loan

Upcoming Class Action Lawsuit on U.S. Stock Loans

In a significant development within the financial sector, a class action lawsuit is currently unfolding in the United States District Court for the Southern District of New York. This legal action concerns individuals and entities that took part in at least 100 U.S. Stock Loan Transactions as either borrowers or lenders between January 1, 2012, and November 17, 2017.

Key Allegations Against Defendants

The lawsuit targets Merrill Lynch and its associated companies, which include Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch L.P. Holdings, Inc. Plaintiffs argue that these entities conspired to obstruct newcomers in the market, thereby diminishing competition and fostering an environment of inefficiency and lack of transparency. These claims draw from Section 1 of the Sherman Act, which is designed to combat anti-competitive practices. Despite facing these accusations, the defendants have firmly refuted the allegations, insisting that their actions were lawful.

Class Action Certification

The court has authorized a class for this action consisting of all parties that engaged in these stock loan transactions, provided they did so through U.S.-based entities linked to the defendants. Special attention is given to two subclasses within the class: 1) the