Bankrupt Stan Lee Media is suing Merrill Lynch brokerage, seeking $10 million for the firm's alleged part in the company's demise, according to a report by Associated Press. The Internet company named after comics creator Stan Lee filed suit Wednesday in U.S. District Court, alleging the brokerage firm didnt do enough to keep Stephen Gordon, former VP Stan Lee Media, and his brother Jonathan, a Merrill Lynch financial consultant, from running an alleged scheme to manipulate the price of the company's stock. Stephen Gordon was convicted last December of conspiracy, wire fraud, bank fraud and making false statements in a check-kiting scheme that cost Merrill Lynch and other financial institutions millions of dollars. Stan Lee Media also claims that Gordon's check-kiting and alleged stock manipulation forced the company to sell devalued stock. A Merrill Lynch spokesman said the brokerage will fight these allegations and that the brokerage itself was victimized. A federal judge is set to approve a proposed settlement this month of a lawsuit filed on behalf of the shareholders. Terms of the settlement include repayment to shareholders from insurance coverage. Lee was not charged in any of the schemes.
