2nd Circ. Parses Antitrust Implications In ARS Action

Law360, New York (April 13, 2011, 9:04 PM EDT) -- The Second Circuit questioned attorneys for both investors and underwriters of auction-rate securities in a class action on Wednesday, trying to determine whether banks' en masse exit from the $330 billion market in 2008 was an antitrust or a securities matter.

Allan Steyer of Steyer Lowenthal Boodrookas Alvarez & Smith LLP, an attorney for ARS investors and issuers, told a three-judge panel of the the U.S. Court of Appeals for the Second Circuit that the dispute was essentially an antitrust matter.

Steyer said that the suit...
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