High Court Won't Reinstate Rejected Part of Calpers Suit

WASHINGTON -- The Supreme Court Monday refused to consider reinstating a rejected part of a California Public Employees' Retirement System (CalPERS) lawsuit against the New York Stock Exchange over the "specialist" stock-trading scandal, The Wall Street Journal reported.

CalPERS is the lead plaintiff in the class-action lawsuit. Last September, the Second U.S. Court of Appeals in New York allowed part of the lawsuit to proceed, exposing the NYSE to charges that during the scandal it made misrepresentations about Big Board market integrity and internal operations, the paper reported.

The Second Circuit panel said, however, that the NYSE was immune from charges it failed to properly regulate specialist firms that buy and sell Big Board stocks. The CalPERS lawsuit was initially thrown out by a U.S. District Court judge in late 2005, the paper reported.

-- NYSSCPA.org News Staff

Posted on 3/24/08