Defendant Name:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Defendant Type:
Subsidiary of Public Company
Document Reference:
judgm18115
Document Details
Legal Case Name
SEC v. Merrill, Lynch, Pierce, Fenner & Smith Incorporated
Document Name
Final Judgment as to Defendant Merrill Lynch, Pierce, Fenner & Smith Incorporated
Document Date
28-Apr-2003
Document Format
Civil Proceeding
Case Number
03-cv-02941
Federal District Court
New York, Southern District of New York
Allegation Type
Investment Advisers/Investment Companies
Disgorgement & Penalty Information
Resolutions
Enjoinment
Compliance Related Independent Consultant
Other Compliance Related Undertaking
Monetary Penalties:
Civil Penalty
Individual:
$100,000,000.00
Shared:
Independent Research ($75 million) and Investor Education ($25 million)
Individual:
$100,000,000.00
Shared:
Total Penalty
Individual:
$200,000,000.00
Shared:
Related Documents:
Complaint
According to the SEC: "Merrill Lynch published research reports on two Internet companies that violated antifraud provisions of the federal securities laws, and published research reports on five other Internet companies that expressed views inconsistent with the analysts' privately expressed negative views in violation of NASD's and NYSE's advertising rules. Those rules require that, among other things, published research reports have a reasonable basis, present a fair picture of the investment risks and benefits, and not make exaggerated or unwarranted claims."
SEC Sues Merrill Lynch and Henry M. Blodget for Research Analyst Conflicts of Interest; Firm and Blodget to Settle with SEC, NASD, and NYSE
Court Approves Modifications to Global Research Analyst Settlement
On March 19, 2010, the SEC published a litigation release announcing that the Honorable William H. Pauley issued an order approving modifications to the final judgments entered against Merrill Lynch, Pierce, Fenner & Smith Incorporated and the other firms covered by the Global Research Analyst Settlement.
Global Research Analyst Settlement; SEC Consents to Termination of Undertakings in Global Research Analyst Settlement
On December 5, 2025, the SEC stated that: "[It] consented to modifications to the
October 2003 . . . and September 2004 . . . final judgments against settling firms still
covered by the Global Research Analyst Settlement, a global settlement of SEC and other
enforcement actions against twelve investment banks and two individuals. The modifications
are subject to court approval."
Notice Regarding Defendants' Rule 60(b) Motion to Modify Addendum A of Global Research Settlement
The SEC stated: "[T]he Securities and
Exchange Commission (SEC) consents to the relief sought by the motions and
agrees that the final judgments should be modified as reflected in the proposed
orders submitted by each respective Defendant. . . . Based on these unique facts and circumstances, the SEC believes
modification of the Judgment is in the public interest."
