Faulting Merrill Lynch for withholding “critical” details about the financial status of a subsidiary that it sold to Allegheny Energy Inc., the 2nd U.S.Circuit Court of Appeals on Friday reversed a $158 million award against Allegheny.

The circuit overturned a 2005 decision by Southern District of New York Judge Harold Baer, who directed Allegheny to pay the full purchase price for an energy unit that it purchased from Merrill Lynch, even though Allegheny claimed the financial services company misrepresented certain information about the unit, Global Energy Markets.

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