analysts should be held to certain legal standards, and brokerage firms will be liable for the actions of their analysts who fail to meet those standards.
The Massachusetts Securities Division filed a complaint alleging fraudulent and deceptive
conduct in the issuance of biased and misleading research analyst reports. The regulatory investigation determined that analyst issued reports inconsistent with the facts and their own internal notes.
Massachusetts Secretary of State William Galvin stated, "It appears at least in some cases that (analysts) treated investors like suckers, and apparently the motive was simply more profit for the company with a reckless disregard for the rights of investors."