A summary of Southern California-related business litigation developments during the past week.

Stock Fraud Suit: A $25-million class-action suit accused Merrill Lynch, Pierce Fenner & Smith and five of its brokers of fraud and stock manipulation after they allegedly targeted Leisure World residents in a scheme to promote what became a worthless penny stock. The U.S. District Court suit said the Merrill Lynch brokers violated the brokerage’s internal policies to “hype” the stock of IMT Inc., a bankrupt company. The defendants allegedly made “serious misrepresentations” about IMT’s expected performance, did not reveal damaging information and conspired to persuade unsuspecting investors to buy the highly speculative stock. Also named as defendants are J. Alexander Securities Inc. and three of its employees, accused of allegedly conspiring to artificially inflate the price of IMT. (Filed July 10, 1990. Case No. 90-3562)