Executives of the Philadelphia Stock Exchange and six Wall Street firms will give depositions this week in a lawsuit that challenges the ownership of the exchange, which is reportedly being eyed by Nasdaq.
The suit was brought last year in the Delaware Court of Chancery in Georgetown by Chuck Ginsburg, a former member of the demutualized PHLX. The suit, which seeks class-action status, wants to return ownership of the exchange of which six Wall Street firms bought 90% in 2005 back to the former PHLX members who are shareholders.
The remedy we are seeking is the rescission of the deal, rolling back the transaction with the Wall Street firms and reverting ownership to the Class A shareholders, said Lawrence Deutsch, attorney with law firm Berger & Montague, which represents the plaintiffs. A hearing is set for June 18, he said.
Mr. Deutsch said he has already deposed Thomas Peterffy, chairman of Interactive Brokers Group, who had made a higher offer for the exchange. Who owns the PHLX is really a case of dispute, Mr. Deutsch added when asked about the possible sale of the exchange to Nasdaq.