Gradient Analytics fired back at '60 Minutes' with a laundry list of facts that the show didn't happen to mention in their piece on Biovail and those mean, nasty alleged short selling scheme conspirators, Gradient and SAC Capital...
Gradient Analytics, Inc. released the following statement tonight concerning CBS’ 60 Minutes segment:
“Tonight 60 Minutes allowed Biovail to air publicly its false and unproven allegations against Gradient Analytics. The 60 Minutes segment was flat wrong in many respects. In typical fashion, 60 Minutes glossed over or failed to report facts that complicated its simplistic format -- facts that would have altered the viewing public’s understanding of the nature and importance of independent research on publicly-traded companies.
“Gradient has been forced to defend practices both legal and appropriate because former customer or sales representatives have since their departure been incorrectly led to believe that our practices were wrong and have intentionally mischaracterized them. It is unfortunate that the former employees are being subjected to intense pressure from the investigators and attorneys representing the Biovail/Overstock.com group.
However, they do not possess the knowledge or the acumen to judge the skill level of analysts and the content of reports. “The analysts (current and former) are the ones who did the work. To a person, these analysts adamantly deny that any report was anything other than their independent analytical work. Gradient did not collude with asset managers or journalists to drive down security prices nor did Gradient accept “ghost written” reports. Anyone who says so is simply wrong.”
Below are just some of the facts 60 Minutes didn’t have time for:
1. Gradient’s analysis about Biovail was well established by March 11, 2003, with the publication of Gradient’s first critical report, almost four months before the alleged “hatchet job” was published on June 20, 2003, and almost ten months before the alleged “improper” meeting with SAC’s Tim McCarthy.
2. Gradient isn’t alone in its critical analysis of Biovail’s business practices. During a time when Wall Street analysts were extremely hesitant to express negative opinions, at least 12 other research analysts, not associated with Gradient, issued negative reports during 2003. Biovail’s announcements of underperformance drove the negative reports, not Gradient’s reports.
3. Biovail’s stock went up, not down, after Gradient released its initial and most substantive, detailed reports. Biovail's stock went up 43% between Gradient’s first listing of the company on its Watch List on December 18, 2002 and its first negative report in March 2003. By the second detailed report in June 2003, the stock had jumped 75%, disproving the illogical allegation that the reports forced share prices down. The stock continued to rise for two consecutive weeks....
The 10 Facts 60 Minutes Left Out, Gradient Responds to CBS News Segment - PR Web
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