Merrill Lynch drops lawsuit vs Fund, others

New York-based Merrill Lynch, the former investment consultant of the NMI Retirement Fund that is being blamed for nearly $150 million in losses sustained by the Fund’s portfolio in 2009 alone, dropped yesterday its lawsuit against the Fund in federal court.

Merrill Lynch, Pierce, Fenner and Smith Inc. (Merrill Lynch), through counsel Sean E. Frink, informed the U.S. District Court for the NMI of its decision to dismiss the lawsuit in its entirety without prejudice.

Frink said the dismissal is pursuant to the agreement of the parties-Merrill Lynch and the defendants.

Frink did not elaborate on what prompted the decision.

Dismissal without prejudice means a case is dismissed but the plaintiff is allowed to re-file a new suit on the same claim in the future.

Merrill Lynch filed the lawsuit in January 2012 against the Fund over the filing of lawsuits against the company without arbitration.