Fed. Sec. L. Rep. P 95,417 Stephen Blumenthal and Les Fein v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

WALKER, Circuit Judge:

Plaintiffs Stephen Blumenthal and Les Fein appeal from a judgment of the United States District Court for the Southern District of New York (John F. Keenan, Judge) denying their motion to recover damages for a wrongful injunction and to forfeit the bond posted by defendant Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch). We hold that the district court had jurisdiction to enjoin plaintiffs pending arbitration, but that when the arbitrators dissolved the injunction, it was rendered “wrongful” thereby permitting plaintiffs to recover on the bond. Therefore, we…