Judge says lawsuit over Merrill Lynch retirement accounts to be settled for $75 million

Worker lawsuit over Merrill Lynch stock settled

NEW YORK — A federal judge gave the final approval for a $75 million settlement on behalf of employees who had Merrill Lynch stock as a retirement investment.

In a key ruling last week, U.S. District Judge Jed Rakoff in Manhattan ruled that the firm left employee money invested in company stock for too long. The ruling includes participants whose accounts included investments in Merrill Lynch stock at any time between Sept. 30, 2006, and Dec. 31, 2008.

The lawsuit was filed under ERISA, a broad federal law that sets rules for pension and 401(k) plans and allows participants to sue over mismanagement.

Bank of America Corp. acquired Merrill Lynch at the start of the year after agreeing to buy the struggling investment bank last fall.