Don’t Wait By The Mailbox

The U.S. News & World Report has an article in its Oct. 27 edition stating that investors have yet to see much of a return from the various Wall Street suits and settlements. The article discusses the research analyst cases (Judge Pollack is dismissing them), the WorldCom and Enron cases (hard to collect), and the IPO allocation cases (a guaranteed payment of $1 billion, but it may take a while to resolve the claims against the investment banks). The author also notes the potential connection between Judge Schendlin’s recent attorneys’ fees decision and the IPO allocation cases (perhaps he reads The 10b-5 Daily.

Quote of note: “In June, insurers for the 309 companies [named in the IPO allocation cases] agreed to pay up to $1 billion to compensate investors–establishing a minimum recovery fund–depending on how much money Weiss wrestles from the investment banks. ‘It’s in the banks’ interest to drag it out, to raise the cost to the other side,’ says one executive in the case. Still, he and others predict Weiss could ultimately settle with the Wall Street firms for $3 billion to $5 billion–partly because the iconoclastic Pollack isn’t handling the case.”

Leave a comment

Filed under All The News That's Fit To Blog

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s