By Graham Hayday, 20 August 2001 08:25
NEWS One of the new economy's leading financial analysts is to face the wrath of Lastminute.com investors for her alleged role in some distinctly dodgy dealing. The famed - if not infamous - Mary Meeker handled Lastminute's flotation for Morgan Stanley last year, and then wrote a positive research note on the company. The angry investors, who have seen their stock fall from a high of 488p to just 36.5p today, now believe she acted improperly by plugging the shares. They allege she did so in order to help her employers win or retain banking business, and not for the benefit of investors. The multimillion dollar suit also names Morgan Stanley itself. along with a number of other senior analysts. Daniel Osborn, the lawyer representing the shareholders, said: "Ms Meeker was in a position of conflict in which she was favouring her firm's interests over that of her customers. We believe she had a fiduciary duty to place their interests first." Meeker and Morgan Stanley deny any wrongdoing.
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