To the distress of Wall Street, the U.S. Court of Appeals has approved this social media-investment-information purveyor's reporting on sell-side analysts' stock recommendations the very momentthey become available, in advance of the market's opening and often even before firms have had a chance to disseminate the reports to all of their clients.Alowercourt had mandated that Theflyonthewall delay distribution for half an hour afterthe opening. The decision bolsters the increasingly important role of social media web sites, such as Naked Capitalism, Seeking Alpha and SumZero, in securities research (Institutional Investor, October 2010). Butthe plaintiffs—Bank of America Merrill Lynch, Barclays Capital and Morgan Stanley—may wellappeal.
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