Shareholder Class Action Filed Against NYSE Specialist Firms By the Law Firm of Schiffrin & Barroway, LLP
28 Oktober 2003 - 1:30AM
PR Newswire (US)
Shareholder Class Action Filed Against NYSE Specialist Firms By the
Law Firm of Schiffrin & Barroway, LLP BALA CYNWYD, Pa., Oct. 27
/PRNewswire/ -- The following statement was issued today by the law
firm of Schiffrin & Barroway, LLP: Notice is hereby given that
a class action lawsuit was 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"). If
you wish to discuss this action or have any questions concerning
this notice or your rights or interests with respect to these
matters, please contact Schiffrin & Barroway, LLP (Marc A.
Topaz, Esq. or Stuart L. Berman, Esq.) toll-free at 1-888-299-7706
or 1-610-667-7706, or via e-mail at . 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.
Plaintiff seeks to recover damages on behalf of class members and
is represented by the law firm of Schiffrin & Barroway, which
prosecutes class actions in both state and federal courts
throughout the country. Schiffrin & Barroway is a driving force
behind corporate governance reform, and has recovered in excess of
a billion dollars on behalf of institutional and high net worth
individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online,
please visit http://www.sbclasslaw.com/. If you are a member of the
class described above, you may, not later than December 16, 2003,
move the Court to serve as lead plaintiff of the class, if you so
choose. In order to serve as lead plaintiff, however, you must meet
certain legal requirements. You may retain Schiffrin &
Barroway, or other counsel of your choice, to serve as your counsel
in this action CONTACT: Schiffrin & Barroway, LLP Marc A.
Topaz, Esq. Stuart L. Berman, Esq. Three Bala Plaza East, Suite
400, Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or
1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin &
Barroway, LLP CONTACT: Marc A. Topaz, Esq. or Stuart L. Berman,
Esq., Schiffrin & Barroway, LLP, +1-888-299-7706,
+1-610-667-7706 or Web site: http://www.sbclasslaw.com/
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