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Court Tosses Short Sale Antitrust Suit Against Banks

Law360 (December 20, 2007, 12:00 AM EST) -- A federal judge has dismissed an antitrust class action against 11 of the largest investment banks in the United States alleging a conspiracy to charge exorbitant and unjustified fees for so-called naked short selling.

In a decision and order issued Thursday, Manhattan District Judge Victor Marrero granted the broker dealers' joint motion to dismiss the complaint, saying a “fine and complex line” existed between anti-competitive behavior and conduct permitted by securities regulators.

Noting the incompatibility of current antitrust laws and securities laws in the context of...
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