Merrill to pay $550 m to settle subprime mortgage suits

Merrill Lynch & Co will pay $550 million to settle claims by the Ohio State Teachers Retirement System and other shareholders that it misled investors about assets backed by subprime mortgages.

Merrill, which was acquired by Bank of America Corp, will pay $475 million in cash to investors including the teachers union fund and $75 million in cash to settle claims by company employees who held stock in certain retirement plans, the company said yesterday in a filing with the US Securities and Exchange Commission.