Disclosures to analysts are risky

Article Abstract:

Public corporations who confer with securities analysts may be unwittingly exposing themselves to several kinds of liability. If a corporation inadvertently discloses inside information to the analyst, insider trading liability could result. A corporation could be sufficiently enmeshed in the preparation of an analyst's inaccurate report to be liable for the inaccuracies. Corporate reluctance to communicate with analysts can result in a short-term rise in stock volatility or securities litigation for market 'surprises.' The SEC has attempted to provide some safe harbors.

Corporations, Securities fraud, Tort liability, Investment analysis, Securities analysis, Tort liability of corporations

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The suitability doctrine revisited: can Orange County sue its broker for recommending the purchase of unsuitable securities for its fund?

Article Abstract:

Orange County may not have a federal case against Merrill Lynch and Company Inc for recommending the purchase of unsuitable securities for the municipal fund if Merrill can show it adequately disclosed the risks of recommended derivative securities to county treasurer Robert Citron and had no reason to believe Citron was neglecting his duties to his principal. The suitability doctrine is stricter under California law and Merrill Lynch could be liable if the broker-client relationship is fiduciary or confidential.

Management, Cases, Securities dealers, Finance, Causes of, Orange County, California, Merrill Lynch & Company Inc., Municipal bankruptcy

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What Constitution says on freeze orders

Article Abstract:

The US Supreme Court holds that the right to a hearing before an Article III court rather than an administrative tribunal depends on whether a public or a private right is being litigated, with public rights belonging before administrative courts. The line between public and private rights has never been firm. In general, legal rights not connected with federal regulatory programs must be heard before Article III courts and have the right to a jury trial.

Analysis, Due process of law, Jury, Juries, Administrative courts

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