The suit was filed last week in Manhatten federal court on behalf of investors who purchased stocks from May 1999 to April 2002. Unspecified damages are sought.
The suit alleges that the defendants issued research reports recommending the purchase of WorldCom shares without any reasonable factual basis. It further alleges that the investment bank and Grubman failed to disclose that the bank was acting as adviser to the corporate at the time of the buy recommendation.
The investors also claim that Salomon and Grubman failed to air their true views on the company.
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