Judge Dismisses Claims Against Merrill
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A U.S. judge Tuesday dismissed claims against Merrill Lynch & Co. by WorldCom Inc. employees who say the brokerage, as overseer of their pension funds, shouldn’t have used the money to buy stock in the long-distance company.
The workers accused Merrill of violating its duties as trustee for their funds by investing 401(k) money in company stock.
But U.S. District Judge Denise Cote in New York dismissed the claims after finding that the brokerage, as a “directed trustee,” was required to follow WorldCom’s investment orders.
WorldCom filed for bankruptcy protection in 2002. Its stock became worthless. The successor company is MCI Inc.
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