Morgan Stanley has been accused of allowing its investment banking interests to color its stock reports. It is one of twelve financial firms to come under recent fire. Luxury firm LVMH says that Morgan Stanley gave preferential treatment to its rival, Gucci, because Gucci is an investment banking client at Morgan Stanley. Although Morgan Stanley did not admit wrongdoing, the firm did agree to a recent $125 million dollar fine to the SEC. If you believe you have a case against Morgan Stanley, please contact the Morgan Stanley fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.
Merrill Lynch has been accused of issuing positive reports about stocks they knew were in decline due to conflicts of interest. The firm did not want to give bad ratings to companies whose investment banking business they wanted to gain or keep. Allegedly, even though it knew trouble was brewing for them, Merrill Lynch advisors gave high ratings to Internet companies during the year 2000. When the companies value deteriorated, Merrill Lynch clients lost their investments -- sometimes their life savings. If you have lost money due to Merrill Lynch investment fraud, please contact the Merrill Lynch fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.
Salomon Smith Barney was fined $400 million in April of 2003 for allegedly allowing conflicts of interest to influence its telecom stock reports. The firm's roster of investment banking clients included major telecommunications clients such as WorldCom. During the telecom bust, Smith Barney continued to give high ratings to its client companies up until just months before they collapsed. The misleading stock reports cost investors millions. Although former Smith Barney telecom analyst Jack Grubman maintains his innocence, the firm agreed to pay the $400 million fine levied by the SEC, even though it was twice the amount Merrill Lynch and some other firms paid. If you have lost money due to Salomon Smith Barney investment fraud, please contact the securities fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.
The fraud allegations against Credit Suisse First Boston (CSFB) encompass several areas. First, as with so many other brokerage firms, the question of conflict of interest between the firm's investment banking business and its research and stock reports has arisen in the CSFB case. Former CEO Frank Quattrone is accused of favoring analysts who gave favorable stock reports to CSFB's investment banking clients. There has also been a question as to whether Credit Suisse was involved in "laddering" stocks. This means selling a buyer a set number of stocks before they go public on the condition that they buy an equal amount once they do go public. This benefits the buyer because they get a good deal on the pre-market stocks and the guaranteed sale temporarily inflates the stock price for the securities firm. Finally, Quattrone and CSFB are accused of "spinning" stocks, or giving certain privileged clients (usually executives of top investment banking clients) access to new stock before they hit the market. The client can sell them for a large return in the first busy day or two of trading. In exchange, CSFB gets their investment banking business and heavy transaction fees. If you have lost money due to Credit Suisse First Boston investment fraud, please contact the securities fraud attorneys at Farah & Farah, P.A. today - located in Jacksonville, Florida.
A discount brokerage, Charles Schwab tried to be an alternative to the big-name securities firms that were coming under fire. Schwab took several key steps in an effort to avoid conflicts of interest and other types of securities fraud. Nevertheless, Charles Schwab is facing several lawsuits. One deals with a delayed billing that occurred nearly half a year after investors' transactions were handled. Another is a class action lawsuit accusing Charles Schwab of overcharging clients for trades and services. If you have lost money due to Charles Schwab investment fraud, please contact the securities fraud lawyers at Farah & Farah, P.A. today - located in Jacksonville, Florida.