CalPERS lawsuit against the New York Stock Exchange was reinstated by the 2nd Circuit Court of Appeals in New York. The pension fund sued over the self-regulatory organizations failure to police its specialist firms for multiple trading violations detrimental to investors in 2003.
We are pleased with the ruling and look forward to moving our case to trial, said Clark McKinley, spokesman for the $247.7 billion California Public Employees Retirement System, Sacramento. Scott Peterson, a spokesman for NYSE Euronext, said his company does not comment on ongoing litigation.
The U.S. District Court of the Southern District of New York dismissed CalPERS suit in 2006 on the grounds that the NYSE, as a market regulator, enjoyed absolute immunity. The specialists settled the charges with the SEC in 2004.