Investors who might have been harmed by biased Wall Street stock research could petition to recover their losses from a settlement pie worth $433 million, according to a new plan set forth by a court-appointed administrator.
The proposal was filed Monday with the U.S. District Court in Manhattan, 21 months after Wall Street's biggest brokerages agreed to settle charges they issued glowing research about companies to try to win investment banking business.
Under the plan, 12 settlement funds ranging from $4 million to $157.5 million would be created to repay investors who bought any of more than 50 stocks. The shares, mostly technology issues, include Global Crossing Ltd., WorldCom Inc., Inktomi Corp. and Oracle Corp.
Investors must have bought the stocks in specific periods to qualify. The periods generally run from 1999 through 2002 but vary by issue. Details appear at www.globalresearchanalystsettlement.com.
Under the plan, it wouldn't be necessary for investors to prove they relied on any analyst report. But investors who bought shares soon after questionable research was issued would recover proportionately more than investors who bought later.
The proposal requires the approval of the court. A hearing is set for April 11.