Class Action Suit Filed Against Lehman Brothers For Recommending RealNetworks


A class action lawsuit has been filed against Lehman Brothers and its analyst Michael Stanek, for recommending RealNetworks, and maintained a “Buy” recommendation “without any rational economic basis”.

The complaint alleges that defendant Stanek stated in a private e-mail regarding the company that “we (Lehman Brothers) bank these guys so I always have to cut the benefit of the doubt.” Stanek even issued positive ratings on RealNetworks stock despite his private opinion that “RNWK (RealNetworks) has to be a short big time”, according to statement by the law firm Rabin, Murray & Frank, filing the suit.

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