New York, Dec 17: The biggest US public pension plan has announced it had filed suit against the New York Stock Exchange and seven "specialist" trading firms for fraud. "We have filed a multimillion-dollar law suit in the US district court in the state of New York to recover losses caused by illegal trading practices on the New York Stock Exchange," California Public Employees' Retirement System president Sean Harrigan said yesterday.
"This lawsuit alleges that the New York Stock Exchange as an institution, together with the specialist firms it is supposed to regulate, have been engaged in a trading fraud scheme so widespread it has generated untold shareholder losses," he told a news conference, which was broadcast via telephone.
The class action lawsuit, of which Calpers wants to be the lead plaintiff, names the NYSE and seven "specialist" trading firms - companies designated to ensure orderly trade in selected shares without actually taking part in the trade.
Bureau Report