Merrill Lynch has agreed to pay the national retirement fund in the Northern Marianas $7.4 million to settle a lawsuit filed against the investment consultant for the drastic drop in the value of the fund's investment portfolio.
Out of the sum, just over $5 million will go directly to the islands' retirees.
Under the settlement Merrill Lynch did not have to admit to any wrongdoing.
Three retirees sued the NMI Retirement Fund's board, Merrill Lynch, and others, alleging various causes of action for damage relating to the decline in the Fund's assets.
The case was submitted to arbitration and the retirees subsequently transferred their claims against Merrill Lynch to the Settlement Fund, the Fund's successor.