Securities Fraud Lawyer - Credit Suisse First Boston: Winstar

Shapiro Haber & Urmy LLP was co-lead counsel in a class action suit brought against Credit Suisse First Boston.  The complaint alleged that CSFB violated section 10(b) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing analyst reports setting a $79 per share target price that lacked a reasonable basis and rating Winstar a "strong buy" without adequately disclosing the significant risks of investing in Winstar, including that Winstar needed to raise more than $3 billion to fund its business plan and that it might not be able to raise the necessary funds. The complaint further alleged that CSFB touted its "independent research" but failed to disclose that it actually used its analyst reports to obtain lucrative fees for its investment banking business. On April 28, 2003, the Securities and Exchange Commission filed a complaint against CSFB in the United States District Court for the Southern District of New York which alleged, among other things, that CSFB issued analyst reports concerning Winstar in 2001 that lacked a reasonable basis for its stock target price, inadequately disclosed the risk of investing in Winstar, and violated NASD and NYSE regulations. The case was settled for $8 million.