University, Merrill Lynch Settle

The University settled its $135 million civil suit against Merrill Lynch Thursday, Vice President and General Counsel Daniel Steiner '54 said yesterday.

The terms of the agreement were kept secret as a provision of the settlement, but University officials expressed satisfaction with the deal.

In its suit before Boston's U.S. District Court Senior Judge Andrew A. Caffrey, Harvard had contended that the New York-based investment giant had sold the University $45 million in securities of Lomas Financial Corporation with the knowledge that the firm was on the brink of bankruptcy.

Moreover, the University's lawyers had said, the firm had already bought off the best parts of Lomas--aiding in the company's collapse.

At both Harvard and Merrill Lynch, the response to the settlement was positive, but no one would discuss the terms of the agreement.

"The University is very pleased with the outcome," said Harvard spokesperson Peter Costa. "But we cannot release the details of the settlement."

Steiner, the University's top lawyer, said, "The outcome is a very satisfactory one, as far as we're concerned." Steiner added that the parties had agreed as part of the deal not to disclose the terms of the settlement.

At Merrill Lynch yesterday, Vice President for Corporate Communications William Clark said in a prepared statement, "Merrill Lynch is pleased that it has been able to settle the litigation with Harvard."

"Harvard is a valued client," Clark continued. "We are delighted to have resumed full business relations and look forward to a mutually rewarding relationship in the future."

Neither Clark not Merrill Lynch's lawyers would discuss the terms of the contract.

Steiner said that one of many reasons the terms of the agreement are being kept secret is to avoid affecting on-going negotiations in seven directly related cases.

Addressing the question of when the terms might be released, Steiner said, "I don't think they ever would be."

Eight other organizations had joined in the suit, but only Harvard and one other plaintiff, Marubeni America Corp., reached agreements with the firm this week.

Other Parties

Lawyers for the other parties say they are very interested in the finding out the terms of Harvard's settlement because of its potential bearing on their own suits, but add that they have had difficulty in obtaining them.

"I've tried to learn," said John L. Cooper, an attorney for one of the firms, the San Francisco-based Delta Dental Plan. "I would like to know so that we won't settle for less."