AIMR believe LVMH case is bad news for researchers

The Association for Investment Management and Research (AIMR) has said the outcome of the lawsuit by LVMH against Morgan Stanley in France will have a "chilling effect" on investment research.

Earlier this week the Paris Commercial Court ordered Morgan Stanley to pay Luxury group LVMH €30m in damages as a result of the broker's research.

AIMR said in a statement today that independent, high quality research makes an essential contribution to securities markets.

It is the responsibility of all market participants to foster an environment in which research can thrive.

LVMH was seeking damages from Morgan Stanley for publishing "erroneous and biased" information over the period 1999-2002 in order to damage LVMH to the benefit of its competitors who are clients of the bank.