Bankruptcy Court
will hear County's Case Management Investment Broker Merrill
Lynch
Santa Ana, California
-- December 1, 1995 -- Approximately one year from the
date that the County of Orange first identified an approximate
$1.5 billion "paper loss" in its investment
portfolio, the county received positive news from bankruptcy
court regarding its case against Merrill Lynch -- Citrons
primary financial advisor on investments U.S. Bankruptcy
Court Judge Ryan today determined that the County' complaint
against Merrill Lynch states valid claims. Merrill Lynch
was directed to answer the complaint on December 21, 1995.
The court also scheduled a hearing for December 12, 1995
to consider and resolve the proper scope of initial stages
of discovery.
J. Michael Hennigan of Hennigan, Mercer & Bennett,
the county's lead litigation counsel stated, "The
decision means that the case is going to trial -- the
only question is: When? The County will do everything
in its power to cause the case to be tried as promptly
as possible. We expect Merrill Lynch will seek further
delay."
Judge Ryan dismissed Merrill Lynch's motion to dismiss
the County's case, this action will save time and litigation
costs on the county's behalf. The county's case centers
around Merrill Lynch's inappropriate and illegal sale
of risky securities. "This is outstanding news, stated
County CEO Jan Mittermeier, " we can now move forward
with our aggressive case. The will allow the county to
proceed at the fastest pace possible to recuperate the
county's investment pool losses and get this bankruptcy
behind us."
Legal