Berger & Montague, P.C. Announces Class Action Lawsuit Against Merrill Lynch & Co., Inc.Business Editors & Legal Writers 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 NYSE See: New York Stock Exchange :MER mer Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of several villages gathered periodically to hold religious festivals and sacrifice animals to nature gods. ) ("Merrill Lynch"), Merrill Lynch, Pierce, Fenner & Smith Inc. and Henry Blodget (collectively, the "Defendants") in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 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 The partial repeal of a law, usually by a subsequent act that in some way diminishes its Original Intent or scope. Derogation is distinguishable from abrogation, which is the total Annulment of a law. DEROGATION, civil law. of the "Chinese Wall Chinese Wall The ethical (not physical) barrier between different divisions of a financial (or other) institution to avoid conflict of interest. A Chinese Wall is said to exist, for example, between the corporate-advisory area and the brokering department to separate those giving " 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was driven into bankruptcy in the 1980s by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. and numerous other defendants. In addition, two other law firms, Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. Milstein Hausfeld & Toll, P.L.L.C. and Shapiro Haber & Urmy LLP LLP - Lower Layer Protocol , 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 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 |
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