NEW YORK - Merrill Lynch & Co. said Wednesday it agreed to pay Sumitomo Corp. $275 million plus an undisclosed amount in legal fees in connection with losses sustained by the Japanese bank from unauthorized copper trading by a rogue employee.

Merrill Lynch, which made no admission of wrongdoing, was one of a group of five financial services companies in which Sumitomo had accounts that the trader used for his unauthorized dealings. The former employee is serving an eight-year prison term as a result of the scandal.

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