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Cauley Geller Announces Class Action Lawsuit Against NYSE Specialist Firms On
Behalf of Investors
NEW YORK, Oct. 28 /PRNewswire/ -- The Law Firm of Cauley Geller Bowman &
Rudman, LLP announced today that a class action lawsuit has been filed in the
United States District Court for the Southern District of New York on behalf of
all those persons or entities who purchased and/or sold shares of stocks of NYSE
and AMEX listed companies that were auctioned by defendants LaBranche & Co.,
LLC, Bear Wagner Specialists LLC, Spear, Leeds & Kellogg Specialists LLC, Van
der Moolen Specialists USA, and Fleet Specialist, Inc. ("Defendant Specialists")
between October 17, 1998 and October 15, 2003, inclusive (the "Class Period").
A copy of the complaint filed in this action is available from the Court, or can
be viewed on the firm's website at
http://www.cauleygeller.com/show_case.asp?ccode=183&pcode=10&pp=4 .
The complaint charges LaBranche & Co., Inc. (NYSE:LAB), LaBranche & Co., LLC, G.
Michael LaBranche, Bear Wagner Specialists LLC, Spear, Leeds & Kellogg
Specialists LLC, Spear, Leeds & Kellogg LP, The Goldman Sachs Group, Inc.
(NYSE:GS) , Van der Moolen Specialists USA, LLC, FleetBoston Financial
Corporation (NYSE:FBF), and Fleet Specialist, Inc. with violations of Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder. The defendants and/or their subsidiaries act as
specialty firms on the New York Stock Exchange ("NYSE") and American Stock
Exchange ("AMEX"). The Defendant Specialists are required to uphold the rules
and requirements of the NYSE and AMEX. One such requirement that the Defendant
Specialists must adhere to is called the "negative obligation." The negative
obligation is the duty to hang back and not trade for the specialist firm's own
account when enough public investor orders exist to pair up naturally, without
undue intervention. Rather than uphold their duties, the Defendant Specialists,
during the Class Period, repeatedly violated their "negative obligation duty" by
engaging in "interpositioning." The complaint further alleges that instead of
executing customer buy-and-sell orders against other customer orders, the
defendants, during the Class Period, intervened and traded using their own firm
accounts to the disadvantage of the customers. More specifically, the Defendant
Specialists would trade ahead of a potential customer by buying stock from the
seller and then selling it to the buyer at a higher price for a profit, rather
than allowing the customers to trade between themselves without specialist
intervention. Thus, the defendants' improper trading activities caused
plaintiff and other members of the Class to purchase and/or sell defendants'
clients' shares at distorted prices and to otherwise suffer damages.
If you are a member of the class described above and you wish to serve as lead
plaintiff, you must move the Court no later than December 16, 2003. If you are
a member of this class, you can join this class action online at
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1 . Any member of the
purported class may move the Court to serve as lead plaintiff through Cauley
Geller or other counsel of their choice, or may choose to do nothing and remain
an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in
class action and corporate governance litigation. It is one of the country's
premiere firms in the area of securities fraud, with in-house finance and
forensic accounting specialists and extensive trial experience. Since its
founding, Cauley Geller has recovered in excess of two billion dollars on behalf
of aggrieved shareholders. The firm maintains offices in Boca Raton, Little
Rock and New York.
If you have any questions about how you may be able to recover for your losses,
or if you would like to consider serving as one of the lead plaintiffs in this
lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.cauleygeller.com/ .
Contact:
CAULEY GELLER BOWMAN & RUDMAN, LLP
Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
Client Relations Department:
Jackie Addison or Heather Gann
P.O. Box 25438
Little Rock, AR 72221-5438
Toll Free: 1-888-551-9944
Fax: 1-501-312-8505
E-mail:
DATASOURCE: Cauley Geller Bowman & Rudman, LLP
CONTACT: Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq., both of
Cauley Geller Bowman & Rudman, LLP, +1-631-367-7100
Web site: http://www.cauleygeller.com/
http://www.cauleygeller.com/show_case.asp?ccode=183&pcode=10&pp=4
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1