Tuesday, February 5, 2008

Norma CDO investigation

Aidikoff, Uhl & Bakhtiari is investigating the possibility of taking legal action on behalf of investors that lost money in a collateralized debt obligation ("CDO") called Norma CDO I Ltd. ("Norma").

Norma, brought into existence by Merrill Lynch, bet heavily on the success of the sub-prime market. Just nine months after it sold about $1.5 billion in securities to its investors, the value of Norma has been decimated in the collapse of the housing market and is reported to be worth only a fraction of its original value.

We are investigating how Merrill Lynch and others marketed Norma, andwhether the true risks of Norma were fully disclosed to its investors. Questions have arisen and we are working to determine whether Norma was suitable for the retail and institutional customers that invested in the product.

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