Monday, January 12, 2004

Blogging on USATODAY.com - Investment research may cost Morgan Stanley $38.5M ...

A rather interesting turn of developments, with Morgan Stanley being asked to pay 30 million euros ($38.5million) in damages to the french luxury goods maker LVMH Moet Hennessy Louis Vuitton, due to an analyst's report which hurt the company !!!

Apparently, Morgan Stanley in 1999 had helped Gucci avoid a takeover by LMVH and MoSt is alleging that LMVH is taking revenge for that!

But a rather shocking development, since if a company were asked to pay compensation for research reports it publishes that apparently hurt a company, it would be the end of all research in companies - surely against free speech - and free beer :)
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