PHILADELPHIA, Aug. 20, 2002 (PRIMEZONE) -- On July 2, 2002, an investor represented by the law firm Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Merrill Lynch & Co., Inc. (NYSE:MER) ("Merrill Lynch"), Merrill Lynch, Pierce, Fenner & Smith Inc. and Henry Blodget (collectively, the "Defendants") in the United States District Court for the Southern District of New York, civil action no. 02 Civ. 5097, on behalf of all persons or entities who purchased Merrill Lynch securities between July 3, 1999 through April 8, 2002 (the "Class Period").
The complaint alleges that the Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5, by employing improper business practices which artificially inflated the prices of Merrill Lynch common stock and other securities during the Class Period. More specifically, the complaint alleges that Defendants' improper business practices included issuing a series of false, inflated and/or biased securities analyst research reports concerning the common stocks of several internet companies for whom Merrill Lynch provided or sought to provide investment banking services, in complete derogation of the "Chinese Wall" that was supposed to separate the firm's research analysts from its investment bankers; failing to adhere to the published securities ratings criteria Merrill Lynch distributed to its clients and other investors; and publicly recommending certain internet stocks to investors in their research reports despite private misgivings and negative opinions about those stocks as reflected in internal e-mails and communications. The complaint further alleges that Defendants manipulated their securities research as part of a larger scheme whereby Merrill Lynch wrongfully linked the compensation of Defendant Blodget and other Merrill Lynch securities analysts, to the amount of investment banking business the analysts generated. The complaint also alleges that Merrill Lynch issued several misstatements to investors concerning, inter alia, the integrity of the firm's securities research and analyst practices in reports the firm filed with the SEC and in other public statements. A copy of the complaint can be obtained from the clerk's office of the court or Berger & Montague, P.C.
The Plaintiff is represented by the law firm of Berger & Montague, P.C. Berger & Montague is a law firm of nearly 60 attorneys which concentrates, among other things, in representing institutional and other investors in securities litigation. For example, Berger & Montague currently represents shareholders as one of the lead counsel in securities litigation involving Sunbeam and Rite Aid, and previously has represented shareholders in securities cases involving Melridge, Waste Management, Drexel Burnham Lambert and numerous other defendants. In addition, two other law firms, Cohen Milstein Hausfeld & Toll, P.L.L.C. and Shapiro Haber & Urmy LLP, are also serving as counsel for the plaintiff. The persons from Berger & Montague identified below are available to answer questions regarding this case.
If you purchased Merrill Lynch common stock or other securities during the Class Period, you may move for appointment as Lead Plaintiff on or before August 30, 2002.
If you have any questions with regard to this notice or otherwise, please contact:
Lane L. Vines, Esq. Karen Markert, Paralegal Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 800-424-6690 or 215-875-3000 Fax: 215-875-4604 e-mail: mercase@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca