Texas Instruments Sues Three Major Banks Over $524M Debt

Texas Instruments Inc (TXN) has sued Citigroup (C), Morgan Stanley (MS) and Bank of New York Mellon Corp (BK), accusing the banks of misleading the chipmaker into buying $524 million of auction-rate securities that have become illiquid.

In a complaint filed Wednesday in a Texas state court in Dallas County, Texas Instruments said the banks falsely marketed the securities, which were backed by student loans, as a low-risk, liquid alternative to other short-term investments. It said the banks also failed to disclose the extent to which they participated in auctions to support the market.

As a result of the banks’ actions, “Texas Instruments was unable to accurately analyze the risks and possible interest rates for the auction-rate securities it was purchasing or holding,” the Dallas-based company said. [via Reuters]

Jasper - The Real Deal!

Risk Our Money Not Yours | Get 50% Off Any Account!

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.