Second Circuit Denies Request to Compel Arbitration in Merrill Lynch ARS Case

Skadden represented Merrill Lynch in an appellate victory denying a bid by the Louisiana Stadium and Exposition District (LSED) to compel arbitration. LSED originally filed suit in both Louisiana state and federal courts relating to its auction rate securities (ARS) offering to finance the renovation of the Superdome. After Skadden transferred the action to the Southern District of New York for coordination with other ARS cases, LSED unsuccessfully sought to compel arbitration of its claims before FINRA. On November 22, the U.S. Court of Appeals for the Second Circuit affirmed the Southern District’s decision, stating, “a litigant is not entitled to use arbitration as a means of aborting a suit that did not proceed as planned in the District Court.”