Details of Stock Research Settlement Outlined

NEW YORK, Feb 1 (Reuters) - A court-appointed  administrator has laid out details on how  a $432.75 million fund, for settlement of  a scandal over Wall Street stock research,  will be divided up, the Wall Street Journal  reported on Tuesday.

The newspaper said the plan, filed on Monday  in the U.S. District Court in Manhattan, follows  the 2003 settlement of charges that Wall Street  firms issued overly optimistic stock research  to win lucrative investment-banking business. 

The plan must be approved by U.S. District  Court Judge William H. Pauley III, according  to the article.

The newspaper said investors are eligible  to collect money if they purchased any of  more than 50 stocks from the specific brokerage  firm linked to that stock.

The purchase must have occurred during specific  time periods that vary from stock to stock,  and must have ultimately resulted in a net  loss to the investor, the article said.

The list of stocks includes many of the dot-com  bubble's biggest names, including Level 3  Communications Inc., WorldCom, Global Crossing  Ltd. and Ask Jeeves Inc., the newspaper said.  Details on the firms and stocks involved were  previously determined by the court, according  to the article.

The article said that, according to the court  filing, investors should receive their checks  within nine months after Pauley issues his  order following an April 11 hearing.

Anyone who is eligible for the fund should  receive a notice by June 3, from the fund  administrator, who will rely on information  provided by the brokerage firms, the paper  said.

Investors who are eligible but do not receive  letters must provide proof of purchase and  loss by July 8, according to the article. 

The firms earlier agreed to provide independent  research to their customers and to contribute  to a fund for investor education. The settling  firms, which include units of Citigroup, Morgan  Stanley and UBS AG, did not admit or deny  the charges, the newspaper said.

Contact Us
Free Consultation: (800) 259-9010