A federal judge in New York has raised the bar for class certification in securities fraud suits that accuse stock analysts of tailoring their evaluations to curry favor with their firms' institutional clients. In an area of law the 2nd Circuit has described as being in flux, Judge Jed Rakoff rejected class action status for three consolidated suits against Lehman Brothers even though the allegations were sufficient to survive motions to dismiss.
2nd Circuit Rejects Class Status in Lawsuit Over Stock Analysis
New York Law Journal
July 13, 2004