Court Revives Claims Against NYSE In Trading Scandal

Law360, New York (September 18, 2007, 12:00 AM EDT) -- An appeals court has put the New York Stock Exchange back on the hook for its alleged role in a massive trading scandal that embroiled major investment houses last year.

In a long-awaited order Tuesday, the U.S. Court of Appeals for the Second Circuit ruled that while the NYSE enjoyed absolute immunity for any regulatory failures, the shield did not extend to allegations that the exchange had misled traders about the market's integrity.

The unanimous ruling overturns in part a December 2005 order by the U.S....
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