Merrill Lynch units ordered by panel to pay $8.1 million
July 27 (Reuters) - A FINRA securities industry arbitration panel ordered units of Merrill Lynch to pay $8.1 million in compensatory damages to Staton Family Investments Inc for breach of fiduciary duty.
Claimants, Staton Family Investments and Daniel Staton, had accused Merrill Lynch, Pierce, Fenner & Smith, Merrill Lynch Bank USA and Merrill Lynch Bank & Trust Co FSB of securities and common law fraud relating to the alleged illegal seizure and theft of 1,260,000 shares of common stock of Duke Realty Corp from Claimants' accounts.
The allegations also include breach of contract and negligence.
The claimants had requested compensatory damages amounting to more than $1 billion.
The arbitration panel, at the beginning of the hearing, said Daniel Staton's claims had no basis and was dismissed.
Merrill Lynch Bank and Merrill Lynch Bank & Trust are not members of FINRA and did not voluntarily submit to its dispute resolution jurisdiction.






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