Opinion ID: 782278
Heading Depth: 2
Heading Rank: 1

Heading: Spielman's State Suit

Text: 3 Spielman, a New York resident, filed his complaint in the Supreme Court of the State of New York, New York County, in February 2001 against Merrill Lynch, a Delaware corporation with its principal place of business in New York. Spielman alleged in the complaint that he opened a Cash Management Account (CMA) with Merrill Lynch in 1999. One type of security offered by Merrill Lynch to CMA account holders was Holding Company Depository Receipts (HOLDRS), an interest in a trust that held shares of common stock issued by twenty specified companies from distinct industry sectors ( e.g., utilities, telecommunications, pharmaceuticals). Spielman alleged that, through a series of confusing statements in its marketing materials, Merrill Lynch represented that a CMA would enable clients, with certain exceptions, to purchase securities such as HOLDRS without paying a transaction fee. Spielman maintains, however, that he was charged a two percent transaction fee — styled by Merrill Lynch as an underwriting fee — for each HOLDRS purchase he made during 2000. 4 Spielman's suit alleged six causes of action under New York state law: breach of contract; breach of an implied covenant of good faith and fair dealing; fraud; negligent misrepresentation; breach of fiduciary duty; and violation of New York Consumer Protection Law, N.Y. GEN. BUS. LAW § 349 (McKinney 1988) 1 . Spielman's complaint alleged no federal cause of action.