Bank of America/Merrill Lynch Prevails in CDO-Related Appeal

For Bank of America and Merrill Lynch, Skadden secured the affirmance of the dismissal of two double-derivative suits that sought to compel the BofA board to force its Merrill subsidiary to bring various claims against certain of Merrill's former officers and directors in connection with Merrill's allegedly risky investments in collateralized debt obligations. On December 4, a U.S. Court of Appeals for the Second Circuit panel rejected the plaintiffs' claims that the BofA board was incapable of deciding impartially whether to bring the claims and improperly refused to pursue them.