Federal Judge Bars Instant Publishing of Analysts' Stock Tips 133
An anonymous reader writes "Big Banking firms Barclay's Capital, Morgan Stanley, and Merrill Lynch successfully obtained an injunction against theflyonthewall.com, Inc., preventing them from immediately publishing the firms' stock upgrades and downgrades. This case could have far-reaching consequences concerning internet communication and publication of news." Here's some interesting analysis from Paul Levy, via Dave Farber's Interesting People list.
No, insider trading (Score:5, Interesting)
Obviously these reports will affect prices, so you tell clients, wait a bit so they can react, and then tell the public. That's market manipulation plain and simple. A more fair ruling would say they have to release the reports publicly at the same time they tell their clients. But then this is a Manhattan federal judge who knows who he works for ;-)
Comment removed (Score:3, Interesting)
Re:Hm. (Score:3, Interesting)
That's basically how hedge funds work, since they cannot get a better yield without additional risk without cheating, they cheat. And to the detriment of everybody that plays by the rules. There are exceptions, but by and large the more clever the methods advertised, the further away you should run from and investment firm. Everything is crafted so as to screw over the outsiders.
Re:Trade Secrets? (Score:4, Interesting)
Remember when that Hulk film from 2003 blamed the internet and texting for ruining opening it's weekend?
Will movie studios now ask for opening weekend injunctions on news sites too from reporting on plot/story and whether it sucks or not, before most theater-goers had a chance to watch it?
I mean, while we limit freedom of press for business concerns, we might as well see what other industries would like.
Re:No (Score:2, Interesting)
It is also worth bearing in mind that the Recommendations are not objective facts, but rather, subjective judgments
The fact that person X has indicated opinion Y, is an objective fact.
If I tell you that I think Obama's approval rating will go up by 3.68% next week. Then your first ammendment right guarantees you can tell your friends "Mysidia thinks Obama's approval is going up 3.68% next week"
etc, etc.
That's not to say I can't claim copyright to my words, or that you could reproduce my statement exactly for that purpose, without infringing on copyrights.
But there is this matter: when a person is a public figure, or an organization is a large corporate entity, whose every word is of public concern --- then the fact they expressed an opinion, is an objective fact, that should fully enjoy the ironclad protection of free speech rights provided by the 1st amendment of the US constitution.
Comment removed (Score:4, Interesting)