Investors Win $2.41M in WorldCom Case
An AP newswire article, via SFGate.com, reports that:
In a rare win for investors seeking redress for biased analyst research, a Boston couple has been awarded $2.41 million in arbitration against Citigroup Inc. and analyst Jack Grubman for his recommendations on WorldCom Inc. stock.
The couple, Joseph M. Salerno and Beverly T. Salerno, claimed they invested nearly $1.12 million in WorldCom stock from 1998 to 2000 based on Grubman's enthusiastic recommendations of the telecommunications company, and then held on to it as the stock declined because his research notes continued to urge optimism about the company's future. WorldCom filed for Chapter 11 bankruptcy-court protection in July 2002, emerging last year under the name MCI Inc.
"They were relying on Grubman's research reports. Even when the stock was heading down, it was portrayed as an opportunity to buy more," said Stephen Murakami, an attorney for Hooper & Weiss in Jericho, N.Y., which represented the Salernos in the National Association of Securities Dealers' arbitration forum.
posted by Fergie @ 10/06/2005 09:55:00 AM
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