NEW YORK, July 8, 2002 (PRIMEZONE) -- Wolf Popper LLP has charged Merrill Lynch & Co., Inc., and its wholly-owned broker-dealer subsidiary and former analyst Henry Blodget, with violations of the federal securities laws. The class action lawsuit, brought in the United States District Court for the Southern District of New York, is on behalf of all persons who purchased Merrill Lynch common stock (NYSE:MER) during the period July 3, 1999 through April 8, 2002, inclusive (the "Class Period").
The complaint alleges that during the Class Period, Merrill Lynch and Blodget misrepresented, among other things, that Merrill Lynch's research analysts "provide insightful, objective and decisive research to clients" and were "an integral component" of Merrill's product offerings to investment banking and brokerage clients. In fact, Merrill Lynch's research analysts, under pressure from Merrill Lynch's investment bankers, routinely manipulated research coverage, and issued inflated ratings and biased research reports to maintain and attract investment banking clients.
Merrill's research analyst practices came to light on April 8, 2002, when after a 10 month investigation, the New York State Attorney General concluded that since late 1999, Internet research analysts at Merrill published ratings for Internet stocks that were misleading. In resolution of the Attorney General's investigation, Merrill agreed to pay a $100 million penalty to New York and other state governments and admitted that the research published by its analysts may not have reflected the analysts' objective opinions of the companies they were covering.
Persons who acquired Merrill Lynch common stock during the Class Period were injured because Merrill Lynch stock traded at artificially inflated prices. When the true facts concerning Merrill's research practices were disclosed, by virtue of the New York State A.G.'s investigation, and subsequent settlement, Merrill common stock plummeted from $53.90 per share to its July 5, 2002 closing price of $39.36 per share.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than August 30, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this actions, you may call or write:
James A. Harrod, Esq. Telephone: 212.451.9642 Abigail Kowaloff, Investor Relations Toll Free: 877.370.7703 WOLF POPPER LLP 845 Third Avenue New York, NY 10022-6689 212.759.4600 E-Mail: IRRep@wolfpopper.com Facsimile: 212.486.2093 or 877.370.7704 Website: http://www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca