Merrill Wins Dismissal of Analyst Cases By U.S. Judge
July 1 (Bloomberg) -- Merrill Lynch & Co. and former analyst Henry Blodget won a dismissal of investor lawsuits accusing them of issuing biased research for two Internet companies.
U.S. District Judge Milton Pollack in Manhattan called the plaintiffs ``high-risk speculators'' who ``now hope to twist the federal securities laws into a scheme of cost-free speculators' insurance.''
Pollack issued his ruling in two cases involving analyst reports for 24/7 Real Media Inc. and Interliant Inc. Those cases are part of a larger group involving Merrill Lynch research that are also pending before Pollack.
``We're pleased with the decision and that the judge accepted our arguments,'' Merrill spokesman Mark Herr said.
Earlier today, Goldman Sachs Group Inc., Credit Suisse Group, and Morgan Stanley won dismissal of an investors' lawsuit accusing the firms of issuing biased research about Covad Communications Group, an Internet company.
The ruling in that case by U.S. District Judge Harold Baer was the first such decision since 10 banks, including Goldman, CSFB, and Morgan Stanley, agreed in April to pay $1.4 billion to settle allegations by regulators that analysts issued slanted research, plaintiff's lawyer Eduard Korsinsky said.
While the Covad plaintiffs presented evidence that the firms' investment bankers exerted ``a very strong influence'' over their research analysts, Baer said, they provided ``no facts to show that the defendants' research analysts actually had a less- optimistic view of Covad.''
Last Updated: July 1, 2003 14:39 EDT |
