[ by Melanie Gretchen ] Former Merrill Lynch brokers appealed to a federal judge to approve a $40 million settlement in a lawsuit over deferred compensation, Charles McCallum, a lawyer for the brokers, said.   If U.S. District Judge Alison Nathan grants preliminary approval, more than 1,400 people will be entitled to cash distributions relating to Bank of America’s 2009 purchase of the investment firm. Getting Their Due Payments. The lawsuit was filed by former Merrill employees Scott Chambers and John Burnette.  It alleged that under an agreement with Merrill they were entitled to payments if there was a change in control at the firm and they were either terminated without cause or left for what was defined as a "good reason." No End in Sight? A resolution would grant Charlotte, North Carolina-based Bank of America a chance "to avoid the cost and distraction of what would likely be continued, lengthy litigation," a spokesperson of BofA said.  However, this resolution might not offer those who would be covered satisfaction.

• Lawyers for Mr. Burnette and Mr. Chambers' plaintiffs said they may seek an award of as much as a quarter of the total settlement, according to a filing submitted by Mr. McCallum.
• Some 500 brokers have hired Michael Taaffe, who said many of those clients are either contemplating or pursuing their own arbitration cases against Merrill.

Either way, Judge Nathan said she will rule on Mr. Burnette and Mr. Chambers' deal proposal later. The case: Chambers v. Merrill Lynch & Co., 10-cv-07109, U.S. District Court, Southern District of New York (Manhattan). For further details, go to [Bloomberg, 8/24/12].