April 29th, 2003
The Wall Street Journal
NEW YORK — Attorneys representing plaintiffs in class-action lawsuits against brokerage firms just got a boatload of free discovery.
The $1.4 billion stock-research settlement announced yesterday provides a wealth of evidence for plaintiffs in class-action lawsuit cases against the brokerage firms and increases the plaintiffs’ likelihood of recovery, several attorneys said. Lawrence Klayman, an attorney at Klayman & Toskes , said the settlement “will put into the investors’ hands a lot of ammunition to pursue claims against brokerage firms.”
As part of the settlement, e-mails in which analysts privately derided stocks they touted to clients will be disclosed to the public. These e-mails can be used in lawsuits pending against the brokerage firms, attorneys said.
“[The settlement] will provide a tremendous amount of evidence at a low cost to ongoing litigation,” said Samuel H. Rudman, an attorney with Cauley, Geller, Bowman, Coates & Rudman LLP, a firm that often represents shareholders in class actions.
(Copyright (c) 2003, Dow Jones & Company, Inc.)