|  | | 2008 News and Press Releases | | |
DISMISSAL NEWS:
High Court Won't Weigh Case Against NYSE
Bailey Somers
Securities Law360. March 24, 2008
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EXCERPT: An appeals court decision granting the New York Stock Exchange immunity from certain allegations made by the California Public Employees' Retirement System will stand, after the U.S. Supreme Court refused to hear the case. The Supreme Court declined the case on Monday. The justices will not determine whether pension funds' claims that NYSE failed to properly regulate specialized trading firms should be reinstated. The U.S. Court of Appeals for the Second Circuit tossed the allegations last September, allowing part of the lawsuit to proceed, but ruling that in certain instances the exchange is immune. While NYSE enjoys absolute immunity for any regulatory failures, the shield did not extend to allegations that the exchange misled traders about the market's integrity, the court said. The unanimous ruling overturned in part a December 2005 order by the U.S. District Court for the Southern District of New York. The district court had dismissed all claims brought by investors against the world's largest stock exchange for allegedly aiding, and in some cases encouraging, seven investment banks in a multimillion-dollar fraudulent self-trading scheme. … The case is In re NYSE Specialists Securities Litigation, case number 06-1038, in the U.S. Court of Appeals for the Second Circuit. |
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