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Allstate Sues Merrill Over Mortgage-Backed Securities

Allstate Corp., the largest publicly traded U.S. home and auto insurer, sued Bank of America Corp.’s Merrill Lynch unit over claims it fraudulently sold the insurer about $167 million of residential mortgage-backed securities.

Allstate asked for damages including the lost market value of the securities, plus principal and interest payments in the complaint filed today in New York state Supreme Court. Allstate filed a similar lawsuit against Credit Suisse Group AG units yesterday in the same court over more than $231 million of the securities.