Judge Gertner Denies Defendants' Motions for Summary Judgment in In re CSFB-AOL Case |
September 6, 2011 |
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On August 26, 2011, U.S. District Court Judge Nancy Gertner found summary judgment “wholly inappropriate” and denied Credit Suisse Securities (USA) LLC, Credit Suisse (USA), Inc. (together “CSFB”), Frank Quattrone, Elliott Rogers, Jamie Kiggen and Laura Martin’s (collectively “Defendants”) motions in In re Credit Suisse-AOL Sec. Litig., No. 02-cv-12146 (D. Mass.).
The case involves claims that CSFB issued materially false and misleading analyst reports between January 12, 2001 and July 24, 2002 regarding AOL Time Warner (“AOL”). Plaintiffs allege that Defendants issued reports positively depicting AOL’s financial prospects and publicly touting AOL’s stock, while CSFB analysts privately believed that AOL could not meet its revenue projections. Plaintiffs allege that Defendants held back on releasing information or lowering AOL’s price in order to curry favor with AOL and in hopes of generating lucrative investment banking business for CSFB.
Judge Gertner’s opinion denying Defendants’ motions for summary judgment notes that “Plaintiffs have offered scores of emails . . . acknowledging misstatements in CSFB’s reports, conceding that important information was omitted, agreeing that the information was material and even that they had an ulterior and wrongful motive, in not disclosing information.” Indeed, Judge Gertner found that “Plaintiffs have provided striking direct evidence to buttress their claims” and she described Defendants’ attempts to challenge Plaintiffs’ claims as “blunderbuss.”
For more information, see Judge Gertner’s opinion:
Memorandum and Order re: Motions for Summary Judgment
You may contact the following Kaplan Fox attorneys about the case and the settlement at (212) 687-1980:
Frederic S. Fox:
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