Categories: OLD Media Moves

Wall Street loses appeal in “hot news” suit

A federal appeals court handed a major defeat to Wall Street banks in ruling that a financial news service did not misappropriate their analyst research for its website.

Reuters reports, “The 2nd U.S. Circuit Court of Appeals said Theflyonthewall.com Inc. did not violate copyright law through the alleged republication of ‘hot news’ and headlines for its namesake site.

“Monday’s ruling is a defeat for Bank of America Corp’s Merrill Lynch unit, Barclays Plc and Morgan Stanley, which argued that Theflyonthewall.com was getting a ‘free ride’ by systematically misappropriating research, including upgrades and downgrades on stocks.

“The appeals court ordered the lower court to dismiss the banks’ misappropriation claim.

“‘A firm’s ability to make news — by issuing a recommendation that is likely to affect the market price of a security — does not give rise to a right for it to control who breaks that news and how,’ Judge Robert Sack wrote for a three-judge appeals court panel.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

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