Merrill Lynch (MER) may be facing a class action suit over the losses it reported in the last quarter.

According to Reuters "the lawsuit, which the lawyers said was filed in U.S. District Court for the Southern District of New York, seeks class-action status. It was brought by law firm Coughlin Stoia Geller Rudman & Robbins LLP on behalf of an institutional investor, Life Enrichment Foundation."

The suit says that Merrill made "materially false and misleading statements about its financial exposure to collateralized debt obligations."

Douglas A. McIntyre