Wednesday, September 19, 2007
The Second Circuit reversed in part a district court's dismissal of Calpers' lawsuit against the NYSE involving its role in the specialists trading scandal. The appeals court held that the plaintiff had standing to bring misrepresentation charges, but could not sue the exchange for regulatory failure, because of immunity. Regulators previously fined all seven specialist firms, and the SEC censured the NYSE. WSJ, NYSE Lawsuit Partly Revived.