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Investment consultant Merrill Lynch settles Fund’s claims
The NMI Retirement Fund’s former consultant, Merrill Lynch, has settled the NMI Settlement Fund’s claims against the consultant, according to U.S. District Court for the NMI designated judge Frances M. Tydingco-Gatewood.
In an order issued yesterday, Tydingco-Gatewood disclosed that she has been advised that a settlement has been reached of the claims asserted against Merrill Lynch on behalf of the Settlement Fund in an arbitration proceeding pending before the Financial Industry Regulatory Authority.
The judge did not disclose the amount involved in the settlement deal.
Tydingco-Gatewood ordered Settlement Fund Trustee Civille & Tang law firm to file the settlement agreement with the court no later than Nov. 6, 2015.
The judge said a hearing on the approval of the settlement deal, along with approval of all attorneys’ fees and costs, shall be held on Nov. 20, 2015, following the presentation of the Settlement Fund Trustee’s report on the status of the Settlement Fund.
Settlement Fund Trustee principal representative attorney Joyce C. H. Tang was ordered to file the status report with the court no later than Nov. 13, 2015.
Merrill Lynch was the Retirement Fund’s investment consultant until 2010. During the time of the consultancy relationship, the value of the Fund’s assets reportedly declined substantially.
Mariano Taitano, Roman Tudela, and Patricia Guerrero, through counsel, then sued the Fund’s board, Merrill Lynch, and others in Superior Court, alleging various causes of action for damages relating to the decline of the Fund’s assets.
The Superior Court lawsuit was then stayed and the matter was submitted to arbitration before the Financial Industry Regulation Authority.
Taitano, Tudela, and Guerrero subsequently transferred their claims against Merrill Lynch to the Settlement Fund.
In October 2014, Tydingco-Gatewood approved the revised engagement agreement that Settlement Fund trustee Tang negotiated with Florida-based Levin law firm, which represents the claims against Merrill Lynch.
