Rich battle with Morningstar takes new turn
The ongoing dispute between Morningstar and its former managing director, Graham Rich, has taken another twist, with Rich accusing the research group of making false and misleading statements.
The latest round of the stoush centres on plans by Morningstar Inc in the US to undertake an initial public offering (IPO).
In documents related to the IPO, Morningstar Inc states it has a wholly-owned subsidiary in Australia.
However, Rich claims he is entitled to 35 per cent of the shares in Morningstar Research in Australia — a point that is connected to the ongoing legal proceedings between the two parties.
Money Management has learned that Rich’s lawyers have written to Morningstar Inc declaring that the research group’s claims to 100 per cent of the Australian business are “false and misleading to potential investors” in the IPO.
The legal dispute between Rich and Morningstar dates back to 2001, when Rich departed the group in controversial circumstances. He subsequently made a multi-million dollar claim of damages against the research house.
The chief executive of Morningstar in Australia, Scott Cooley, countered Rich’s latest claims, saying the research group had contended in its court filings that the Australian business is wholly owned by Morningstar Inc.
But Rich told Money Management he would pursue the matter further, including making a formal complaint to the Australian Securities and Investments Commission and the Securities and Exchange Commission in the US.
“We are troubled that the [IPO documents] contain numerous false statements relating to the Australian operations,” Rich says.
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