NYSE Floats Rules To Stanch Reverse Merger Ripoffs

Law360, New York (August 9, 2011, 1:35 PM EDT) -- New York Stock Exchange LLC on Thursday filed tougher proposed rules governing how reverse merger companies — making recent headlines for securities frauds emanating particularly from China — should conduct themselves in order to be listed on major U.S. exchanges.

The move comes after a recent report by Cornerstone Research that shows securities class actions related to Chinese reverse mergers boosted the amount of litigation in the first half of 2011.

Major U.S. stock exchanges are eager to avoid the potential bad publicity associated with market...
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