Previous Story
Judge OKs deal with law firm to pursue claims vs Merrill Lynch
Designated judge Frances M. Tydingco-Gatewood of the U.S. District Court for the NMI has approved the revised engagement agreement that NMI Settlement Fund trustee Joyce C. H. Tang negotiated with a law firm that currently represents the claims against the NMI Retirement Fund’s former consultant, Merrill Lynch.
Tydingco-Gatewood said she has reviewed the proposed agreements and finds good cause to approve them.
The proposed agreements refer to the parties’ stipulation, assignment of claims agreement, and the engagement agreement with the Florida-based Levin law firm.
The Levin law firm represents individual claimants Mariano Taitano, Roman Tudela, and Patricia Guerrero who are pursuing the case against Merrill Lynch.
Tydingco-Gatewood earlier rejected the original engagement agreement with Levin law firm. This prompted Tang to renegotiate the deal.
Merrill Lynch was the Fund board’s investment consultant until 2010. During the time of the consultancy relationship, the value of Fund’s assets reportedly declined substantially.
Taitano, Tudela and Guerrero, through their other counsel O’Connor law firm, 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 lawsuit in Superior Court was then stayed and the matter was submitted to arbitration before the Financial Industry Regulation Authority.
On Tuesday, Taitano, Tudela, and Guerrero transferred their claims against Merrill Lynch to the Settlement Fund.
