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Quattrone Dot-Com Lawsuit Dismissed

January 19, 2012
And it only took 10 years. A federal judge dismissed a lawsuit against Credit Suisse and former star investment banker, Frank Quattrone, ending a decade-old shareholder action brought by investors in AOL-Time Warner stock. In granting summary judgment to CS, Quattrone and 3 others, Judge Nathaniel Gorton of Federal District Court in Boston removed the last remaining of 11 civil lawsuits brought against Mr. Quattrone related to his conduct during the dot-com boom.  It also reversed a decision last August by Judge Nancy Gertner, who rejected a motion by Credit Suisse and Mr. Quattrone to throw out the case. Judge Gertner retired during the week that she issued her opinion in the case, and was replaced by Judge Gorton.  In his ruling, Judge Gorton noted that there was no triable issue in the case, deeming the plaintiff’s expert’s report on the cause of the investor’s loss as unreliable. Basis of the Complaint. AOL-Time Warner investors had accused Credit Suisse of issuing misleading research on the company.  Mr. Quattrone was Credit Suisse’s premier investment banker during the Internet boom, advising on some of the era’s most well-known IPOs, including Amazon.com and Cisco Systems.  When the dot-com bubble burst, Credit Suisse and other banks were accused of issuing misleading research on technology companies to secure investment banking business. For the past 10 years, Mr. Quattrone has had to fend off a variety of criminal and civil charges brought against him - which he did successfully.  Meanwhile, Mr. Quattrone has re-established himself as the pre-eminent deal maker in Silicon Valley - he and his new firm, Qatalyst Partners, have advised on a number of multi-billion-dollar mergers over the last 2 years, including Google‘s $12.5 billion acquisition of Motorola Mobility.    [Dealbook, 1/17/12] For further details, go to the [Federal Court Ruling].