Bove Speaks On BankAtlantic Suit
August 26, 2010 2:01 PM
In 2008 BankAtlantic Bancorp Inc. (NYSE: BBX) sued analyst Dick Bove and his employer for defamation. The allegations were based on Bove’s inclusion of BankAtlantic on a list of potential bank failures. With the suit over, Bove was eager to discuss the controversy on Zing Talk.
“The whole thing was a farce within a farce,” said Bove. “I’m paid by my clients to provide opinions concerning the banking industry. To be sued for doing what I’m required to do in my job was a bit of a shock.”
The looming shadow of the BankAtlantic lawsuit affected Bove’s day to day duties. “While the suit was underway it inhibited my ability to do certain things as an analyst,” he explained. “I was being told constantly by my lawyers that certain things I might write or say could be viewed as malicious towards BankAtlantic, even if they had nothing to do with BankAtlantic.”
Bove went on to call the incident, which has since been resolved, an ordeal, adding that the lawsuit lasted over two years and cost him $750,000 in defense. BankAtlantic Bancorp. eventually dropped the suit and received no settlement or legal award.
When asked if the lawsuit has changed the way Bove views his job he simply said, “Now that BankAtlantic has walked away I have a greater degree of freedom at expressing what I like.”
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