Tuesday, March 21, 2006

A Republican Supreme Court protects Big Business fraud....

A conservative Republican Supreme Court, with no resistance from a minority of Democratic appointees, turned its back on workingmen and workingwomen.

In Merrill Lynch v. Dabit, 04-1371, the U.S. Supreme Court blocked state class-action lawsuits by stockholders who were tricked into holding onto declining shares.

“It was a major victory for Merrill Lynch & Co., which faced a spate of lawsuits prompted in part by New York Attorney General Eliot Spitzer's 2002 probe into the investment banking firm's practices. Spitzer uncovered records showing that Merrill Lynch analysts publicly recommended that investors buy stocks that were described privately as a ‘disaster’ or ‘dog.’ Merrill Lynch agreed to a $100 million fine.”
William Federman, the Oklahoma City attorney for the brokers, said: "It sends a signal to investors this court is seeking to continue what Congress started, to protect big business.”


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