Class action suit against Credit Suisse for misleading analysts reports is filed on behalf of purchasers of Agilent stock

October 23, 2002

2 Min Read

BOSTON -- A class action suit alleging securities fraud has been filed in the United States District Court for the District of Massachusetts against Credit Suisse First Boston Corporation, a subsidiary of Credit Suisse Group (NYSE:CSR - News), ("Credit Suisse"), and one of its technology analysts by the law firm of Shapiro Haber & Urmy LLP. The case was filed on behalf of all persons who purchased common stock of Agilent Technologies Inc. (NYSE:A - News) ("Agilent") during the period from December 13, 1999 through September 9, 2002 (the "Class Period"). The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing favorable research reports on Agilent that were materially false or misleading by failing to disclose conflicts of interest of Credit Suisse, and in particular the practice of Credit Suisse to gain lucrative investment banking business in part by providing coverage and issuing favorable research reports on prospective investment banking customers. According to news reports, an investigation conducted by the Secretary of the Commonwealth of Massachusetts uncovered "very troubling" internal Credit Suisse materials that "suggest . . . a pattern of breach of fiduciary duty" and which appear to have "treated investors like suckers". One internal Credit Suisse document discusses the "Agilent two-step", in which Credit Suisse issued favorable reports on Agilent to the investing public, while simultaneously informing favored customers verbally that Credit Suisse's true opinion of Agilent was less favorable. The Secretary of the Commonwealth has suggested that criminal charges be filed against Credit Suisse and on October 21st the Secretary filed civil fraud charges against Credit Suisse. Shapiro Haber & Urmy LLP has previously filed a suit against Credit Suisse on behalf of purchasers of Razorfish, Inc. stock. The firm anticipates filing similar class action complaints on behalf of investors in other companies that were also the subject of favorable research reports by Credit Suisse. Credit Suisse First Boston Corp. Agilent Technologies Inc.

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