Wall Street Sues Utah Over Naked Short-Selling Law

Law360, New York (July 31, 2006, 12:00 AM EDT) -- A month after Utah legislators paved the way for hefty fines against so-called naked short-sellers with a new law, Wall Street’s prime trade association is suing the state government, saying the law illegally usurps the jurisdiction of federal regulators.

The lawsuit, filed on Friday in the U.S. District Court for the Central District of Utah, seeks to overturn Utah Senate Bill 3004, which was signed into law earlier this year amid strong opposition from the Washington, D.C.-based Securities Industry Association.

That bill modified the Utah Uniform...
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