The Philadelphia Stock Exchange, led by chairman Meyer Frucher, has finalized its settlement of a class-action lawsuit instigated by a former floor trader alleging that the PHLX bungled its sale to six investment houses in 2005 (UBS Securities LLC, Morgan Stanley & Co. Inc., Citigroup Financial Products Inc., Credit Suisse First Boston, Citadel Derivatives Group LLC and Merrill Lynch, Pierce Fenner & Smith Inc.) Their lead law firm, Berger & Montague P.C., says the plaintiffs will divvy up between $67 million and $80 million from the PHLX.
Says Lawrence Deutsch of Berger & Montague: "We are pleased by this settlement which is a fine result for our class. This result also upholds the rights of all shareholders to successfully challenge a board's actions in a dilutive transaction."
No comment from Frucher or the PHLX. But the finalized deal clears a liability and comes just in time, because Frucher now wants to sell the PHLX again.
