February 15, 2007
Gradient Cleared Of Hedge Fund Conspiracy
The SEC’s hunt for fraudsters sometimes nets innocent firms too. The recent instance of Gradient Analytics, an independent research firm is a case in point. Gradient was accused of conspiring with hedge funds to drive down stock prices. Recently, the firm received official notification that the SEC had ended its probe into the firm and no enforcement action has been recommended against it.
The SEC began investigating the firm after receiving a couple of complaints from online retailer Overstock.com, hedge fund Rocker Parnters and Biovail, a pharmaceutical firm from Canada. Wonder what grouse these firms had against Gradient. According to Gradient CEO Brad Forst, the reason could be their trademark independent and objective research. Well, truth can hurt but wonder why anybody would want to get vindictive.
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