Research Firm’s Founder Explains $6 Million Payment to Fired Forbes Editor
RJ Shook, founder of Shook Research, apologized for paying former Forbes editor Randall Lane $6 million, stating he had the best intentions. The payment followed Lane's assistance in the sale of Shook Research. The revelation led to Lane's termination from Forbes and has prompted major financial firms, including Morgan Stanley and Wells Fargo, to suspend their participation in Forbes and Shook Research advisor rankings. Forbes has retained outside counsel to explore its legal options regarding the payment.
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- ✓ RJ Shook paid former Forbes editor Randall Lane $6 million after Lane helped sell Shook Research.
- ✓ Morgan Stanley has suspended its participation in the Forbes and Shook Research rankings.
- ✓ Wells Fargo Advisors has suspended its participation in Forbes and Shook Research advisor rankings and conferences.
- ✓ Forbes has hired outside counsel to explore its options.
What changed
Wells Fargo has joined Morgan Stanley in suspending participation in the advisor rankings and conferences.
Live updates
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RJ Shook Explains $6 Million Payment to Former Forbes Editor
RJ Shook, founder of Shook Research, apologized for paying former Forbes editor Randall Lane $6 million, stating he had the best intentions. The payment followed Lane's assistance in the sale of Shook Research. The revelation led to Lane's termination from Forbes and has prompted major financial firms, including Morgan Stanley and Wells Fargo, to suspend their participation in Forbes and Shook Research advisor rankings. Forbes has retained outside counsel to explore its legal options regarding the payment.
Why it matters
The Forbes and Shook Research rankings provide significant professional visibility for financial advisors. The scandal raises concerns among registered investment advisors and wirehouses regarding the regulatory and reputational risks of relying on these rankings for credibility.
What is confirmed
- RJ Shook paid former Forbes editor Randall Lane $6 million after Lane helped sell Shook Research.
- Morgan Stanley has suspended its participation in the Forbes and Shook Research rankings.
- Wells Fargo Advisors has suspended its participation in Forbes and Shook Research advisor rankings and conferences.
- Forbes has hired outside counsel to explore its options.
What to watch next
- Legal actions filed by Forbes against RJ Shook or Randall Lane
- Statements from other participating wirehouses regarding their continued involvement in the rankings
confidence 100%Sources used for this update (10)
- The New York Times — Research Firm’s Founder Explains $6 Million Payment to Fired Forbes Editor
- WSJ — Former Forbes Editor Got $6 Million for Helping Magazine’s Partner With Sale
- AdvisorHub — Exclusive: Morgan Stanley Suspends Participation in Forbes/Shook Rankings
- New York Post — Researcher who paid fired Forbes editor $6M apologizes, says he had ‘the best intentions’
- The Daily Beast — Founder Comes Clean Over $6M Payment That Got Forbes Editor Fired
- Talking Biz News — Forbes is exploring options, has hired outside counsel
- RIABiz — After dominating Forbes rankings for years, Morgan Stanley suspends participation over $6-million editor scandal -- forcing RIAs and wirehouses to weigh whether 'rented credibility' is worth regulatory and reputational risk
- www.thewrap.com — Fired Forbes Editor’s $6 Million ‘Gift’ Came After Helping With Company Sale
- www.bostonglobe.com — Judge narrows Ben & Jerry’s lawsuit accusing Unilever of silencing social activism
- www.thewealthadvisor.com — Wells Fargo Just Walked Away From The Forbes Advisor Rankings
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