Judge Pollack's Decision to Dismiss Analyst Cases
July 2, 2003 As reported in the Washington Post, Toronto Star, Los Angeles Times and New York Daily News, Merrill Lynch won a dismissal of class-action investor lawsuits when U.S. District Judge Milton Pollack ruled that allegedly biased research reports from stock analysts were not to blame for inflating the market bubble that burst in 2000. This and another ruling, also in the Southern District of New York, were the first to address Merrill Lynch's and other banks' liability for research since 10 of the largest Wall Street firms agreed in April to pay $1.4 billion to settle similar charges by regulators. Steven Toll, an attorney for the plaintiffs in the Merrill Lynch case, provides his reaction to the ruling in the following excerpts: Steven J. Toll, an attorney for plaintiffs in the Merrill case, called Pollack's decision "very disappointing and somewhat disturbing." We've seen the SEC come down on Merrill and fine them hundreds of millions of dollars . . . and yet we have a judge saying, 'Sorry investor. You can't recover' . . . It's wrong to leave the investors unprotected when there is clear misconduct."
Investor Suits Against Wall St. Firms Rejected; Federal Judges Dismiss Class Actions Blaming Research Reports for Technology-Stock Losses
By Ben White and Brooke A. Masters, Washington Post, July 2, 2003 Steven Toll, who represents investors in the Merrill Lynch case, said the plaintiffs would either appeal or ask Pollack to reconsider his ruling. "It's almost inconceivable that Merrill Lynch could have been dismissed," he said, citing the firm's participation in the $1.4 billion settlement of the SEC's fraud suit.
"These plaintiffs were not speculators," he said. "These plaintiffs were hard working people who built up businesses, and then sold them for shares in Internet companies that later collapsed."
Brokers Win Dismissal of Analyst Cases
By David Glovin, Bloomberg News, Toronto Star, July 2, 2003 "You have one of the worst scandals ever perpetrated on American investors," said Steven Toll, who represented plaintiffs in the Merrill case. "Yet, a judge is saying investors can't recover."
Merrill's Off the Hook
By Daniel Dunaief, New York Daily News, July 2, 2003 Steven Toll, who represents investors in the Merrill case, said the plaintiffs would either appeal or ask Pollack to reconsider his ruling. "These plaintiffs were not speculators," he said. "These plaintiffs were hardworking people who built up businesses" and then invested in Internet companies that later collapsed."
Wall St. Banks Win Dismissal of Investor Suits
Bloomberg News, Los Angeles Times, July 2, 2003 |
