Forbes Has $6M Egg on Its Face

Key Points:

• Forbes and Shook Research are pausing their joint financial adviser rankings and related events through the end of the year, including a major October wealth summit in Las Vegas, amid a $6 million conflict-of-interest scandal.
• The controversy centers on former Forbes editor Randall Lane receiving $6 million from Shook founder RJ Shook, which Lane failed to disclose; he described the payment as a "gift" and admitted this was a serious error in judgment.
• Forbes CEO Sherry Phillips emphasized the need to rebuild trust despite confidence in the rankings and announced the hiring of outside counsel for an independent review, while exploring possible actions against Lane.
• Major financial firms Morgan Stanley and Wells Fargo have already withdrawn from participating in Forbes' adviser rankings as the investigation proceeds.
• Both Forbes and Shook maintain that Lane did not influence the selection of advisers ranked in their joint lists.