Re: [CSFB] A $1m Message Board Precedent?
A $1m Message Board Precedent?
Brett Pope
Jul 13 2000
Global investment bank Credit Suisse First Boston (CSFB) has filed a $1m lawsuit against 11 individuals who post messages on the Yahoo message board about Elan [ELN], an Irish pharmaceutical company. The lawsuit claims that the authors posted messages that contained false and defamatory statements about CSFB and David Maris, one of its research analysts. While the lawsuit may draw some attention to Elan, it will have no effect on the company’s business. I maintain my buy rating on Elan.
Maris covers specialty pharmaceutical stocks for CSFB, including Elan, which he has long rated a hold. While I disagree with his opinion, he is entitled to it. However, many of the posters on the Elan message board have ridiculed Maris for his reports and opinions on Elan. I've had a look at some of the messages on Elan’s board and while some of the personal attacks are unnecessary, I generally find the board to be much more professional and informative than most of others I've seen.
The outcome of this lawsuit will be closely watched because it could have a profound impact on the use of message boards and how information is exchanged over the Internet. I personally believe the lawsuit is frivolous and hope it will be dismissed. At StreetAdvisor, we have all been subject to ridicule on message boards--it comes with the job.
One of the advantages of our reports, however, is that they are always unbiased. We have no reason to give a recommendation unless we believe it. Unfortunately, the sell-side analysts at Wall Street firms cannot make the same claim to their customers. For more on the Wall Street bias and why investors need an impartial champion, click here.
Brett is a health care analyst for StreetAdvisor.com. As a full-time employee of StreetAdvisor.com, Brett is prohibited from actively trading individual stocks, options, and bonds. As per company policy, Brett has not opened a new position in a stock since February 1, 2000.
Copyright 2000, StreetAdvisor.com, Inc.
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