Parker & Waichman, LLP to File Claims Against Tyco International and Merrill LynchAug 13, 2003 | PR Newswire
Parker & Waichman, LLP announces that it has been retained by plaintiffs and that they will soon file claims against Tyco International and Merrill Lynch. To date, Parker & Waichman, LLP and associated counsel have already been retained by hundreds of individuals financially injured by the inappropriate advice of Merrill Lynch. Current and former Tyco shareholders are encouraged to visit www.yourlawyer.com/practice/overview.htm?topic=Tyco%20%20Stock%20Fraud for more information.
The claims will charge that Merrill Lynch issued fraudulent research reports for Tyco International to attract investment banking business from the company. Earlier this year Merrill Lynch analyst, Phua K. Young, was charged by the NASD for issuing misleading research reports for Tyco International that did not reflect his own doubts about Tyco's strategy and for providing Tyco executives with a copy of the research report before it was released to the public to get their approval.
The NASD stated that Phua K. Young sent Tyco's CFO an e-mail that contained a draft of his reports/ratings in which Mr. Young stated, "PLEASE REVIEW ASAP, I WILL NOT SEND IT OUT UNTIL I HEAR FROM YOU FIRST! LOYAL TYCO EMPLOYEE!"
Additionally, Mr. Young has been accused of presenting Tyco CEO Dennis Kozlowski with a $4,500 case of wine as a wedding gift. Tyco or representatives of Tyco reciprocated by reportedly giving Mr. Young a $3,500 case of champagne as a wedding gift, US Open tennis tickets, use of a private investigation service, and a flight on a Tyco corporate jet.
All of the instances above violate the $100-a-year gift limit and demonstrate an unusual closeness between an analyst, who is supposed to be objective, and a public company that he covers.
Tyco International, in a report to the SEC, has admitted to over-reporting its 2002 results by nearly $400 million. Additionally the Company admitted that its last five years of financial reports were also inflated. Three of Tyco International's top executives have been indicted for fraudulent activities. The three executives are accused of stealing $600 million through loans, bonuses, and illegal stock sales. Regulators have said that the three executive used Tyco as "their personal piggy bank."
These complaints will charge that Tyco International and Merrill Lynch violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under, by issuing a series of materially false and misleading statements. Additionally these complaints will charge Merrill Lynch with violations of Section 15(c) of the Securities Exchange Act of 1934, as well as various state statutes, for issuing fraudulent research reports and for violating NYSE Rules 401, 472 and 476(a)(6), and NASD Rules 2110 and 2210, for issuing research reports that were not based on principles of fair dealing and good faith, did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases.
Parker & Waichman and associated counsel currently represent hundreds of victims of stock fraud and we continue to aggressively file claims against fraudulent public companies and investment banks. Current and former Tyco International shareholders that have been adversely affected by the inappropriate conduct of Tyco and Merrill Lynch are encouraged to visit www.yourlawyer.com/practice/overview.htm?topic=Tyco%20%20Stock%20Fraud for more information and to request a free case evaluation. For more information on Parker & Waichman, LLP please visit our site at www.yourlawyer.com or call 1(800)-YOURLAWYER.
Parker & Waichman, LLP