Another Investor Who Can't Do Due Diligence Loses Lawsuit

from the come-on-people dept

These cases keep popping up. A few months back we talked about a case that was thrown out when an investor who couldn't do their own due diligence sued Merrill Lynch for their stock recommendations that tanked after the bubble. Now, in a fairly similar case, a couple who should know better, has lost an arbitration case against Merrill Lynch. The details here are even more ridiculous. The guy was the head of a petroleum company, and obviously knows better than to trust analyst reports. In fact, the details show he clearly did not trust analyst reports. Many of his investments were made before Merrill covered a stock, or on stocks Merrill never covered. Clearly, this case was brought by a couple who couldn't handle the fact that they screwed up and were looking for anyone to blame. If you're investing money, you should be willing to lose it. If you trust someone else to invest all of your money for you without doing your own due diligence, then it's your own fault for following bad advice. Anyone who doesn't know that, shouldn't invest.