Judge OKs Fraud Suits In E-Trade, MarketXT Spat

Law360, New York (October 2, 2006, 12:00 AM EDT) -- A federal bankruptcy judge gave the green light on Friday to litigation between E-Trade Financial Corp. and MarketXT Holdings Corp., allowing the companies’ fraud allegations against each other to proceed in the bankruptcy court where MarketXT’s Chapter 11 case is pending.

U.S. Bankruptcy Judge Allan L. Gropper refused to dismiss litigation involving a $280 million deal in which E-Trade bought MarketXT's Tradescape electronic brokerage units in 2002. Each company alleges in the litigation that the other defrauded it and breached the agreement that documented the acquisition....
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