Millar v Merrill Lynch - $7.74 Million JAMS Award

In July 2002 a JAMS arbitration panel awarded a couple $7.74 million arising out of claims of breach of contract, negligence and fraud against Merrill Lynch. The panel found that Merrill Lynch breached duties to formulate and implement suitable investment strategies. The panel also found that Merrill Lynch failed to offer and explain hedging strategies suitable to the Claimants' objectives prior to the expiration of a post-IPO lockup. Finally, the panel found that Merrill Lynch's covered call writing was not a suitable strategy for dealing with the Claimants' concentrated position. This award has been mischaracterized as a simple failure to execute a sell order case. We have posted the award so that you can read the panel's conclusions for yourself.

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