Top U.S. Court Limits Investor Suits in Merrill Case

[NVMojo]

corporate cronyism rises again ...

March 21 (Bloomberg) -- The U.S. Supreme Court put new limits on securities lawsuits, ruling that a 1998 federal law bars large class-action cases by investors who say they were duped into holding onto stocks and bonds.

The justices today unanimously cut back a lawsuit filed against Merrill Lynch & Co. by a former broker who said he lost money on his personal account when the firm's analysts gave glowing recommendations to stocks they disparaged in private.

The court said the 1998 Securities Litigation Uniform Standards Act permits large class-action suits -- those seeking to represent more than 50 investors -- only by purchasers and sellers of securities, not by people who simply hold investments. The ruling reverses a lower court decision that had opened up the industry to so-called holder suits.

more...

http://www.bloomberg.com/apps/news?pid=10000087&sid=aC.U_7AVyrzs&refer=top_world_news