NEW YORK, May 12, 2004 (PRIMEZONE) -- The law firms Kirby McInerney & Squire, LLP and Futterman & Howard, Chtd. announced today (May 12, 2004) that on May 11, 2004 an NASD arbitration panel sanctioned Merrill Lynch, Pierce, Fenner & Smith, Inc., a subsidiary of Merrill Lynch & Co., Inc. (NYSE:MER), for failure to comply with an earlier order of the panel that required Merrill to turn over evidentiary material. As a consequence, Merrill must pay a sanction in the form of counsel fees, to be increased daily to the extent Merrill further fails to produce the documents in a timely manner.
Roger Kirby, of Kirby McInerney & Squire, noted, "Consistent with the jury verdict of obstruction of justice in the Quattrone trial, this order shows that neither the public nor tribunals have patience with those who withhold information bearing on alleged misconduct."
In prior arbitration proceedings against Merrill, the same law firms established Merrill's liability to former customers for both punitive and compensatory damages associated with Merrill Lynch's systematic misuse of research analysts to court and cater to investment banking clients and prospects.
In making that January 2004 award the panel characterized Merrill's conduct as "egregious" in respect of, among other things, Merrill's failure to disclose that research reports were the product of conflicted interest, its breaches of NASD Regulations and NYSE Rules governing analysts conflict of interest, and Merrill's breach of its own internal Policy and Procedures Manual.
New York-based Kirby McInerney & Squire, LLP and Futterman & Howard, Chtd. of Chicago specialize in complex litigation, including securities litigation. The firms' efforts on behalf of investors in securities litigation have resulted in recoveries totaling many hundreds of millions of dollars, and the quality of their achievements has been chronicled by many courts. The firms are pursuing arbitration claims on behalf of additional former Merrill customers.
For more information:
Ira M. Press, Esq.
Elaine Mui
KIRBY McINERNEY & SQUIRE, LLP
830 Third Avenue, 10th Floor
New York, New York 10022
Telephone: (212) 317-2300
or Toll Free (888) 529-4787
E-Mail: emui@kmslaw.com
website: www.kmslaw.com
or
Ronald L. Futterman, Esq.
FUTTERMAN & HOWARD, CHTD.
122 South Michigan Avenue
Suite 1850
Chicago, Illinois 60603
Telephone: (312) 427-3600
E-Mail: rfutterman@futtermanhoward.com
website: www.futtermanhoward.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca