Calgary Herald

Website wins tussle over ‘hot’ stock tips

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Wall Street banks were handed a major defeat Monday when a U.S. appeals court ruled an online news service did not misappropr­iate their stock research by publishing headlines about analyst upgrades and downgrades.

Reversing a lower-court ruling, the federal appeals court said theflyonth­ewall. com could not be liable for systematic­ally republishi­ng “hot news” on its website.

Bank of America Corp’s Merrill Lynch unit, Barclays and Morgan Stanley argued the website was getting a “free ride” on their research, costing them profits.

“A firm’s ability to make news — by issuing a recommenda­tion that is likely to affect the market price of a security — does not give rise to a right for it to control who breaks that news and how,” Judge Robert Sack wrote for a three-judge appeals court panel.

 ?? Spencer Platt, Getty Images ?? Banks and investment advisers do not have sole rights to stock research they issue, a U.S. court ruled Monday.
Spencer Platt, Getty Images Banks and investment advisers do not have sole rights to stock research they issue, a U.S. court ruled Monday.

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