Judge Bounces Suit Against SEC-Backed Program

Law360, New York (February 26, 2008, 12:00 AM EST) -- A federal judge has tossed out a lawsuit alleging that the Depository Trust and Clearing Corporation, the organization that oversees the clearing and settlement of securities in the U.S., engaged in a short-selling conspiracy through its loan-borrow program.

On Tuesday, Judge Rodney Webb of the U.S. District Court for the Eastern District of Arkansas granted DTCC’s motion to dismiss with prejudice the case brought by Pet Quarters Inc., ruling that the online pet supplier’s claims were trumped by federal preemption law.

“Because Pet Quarters’ state claims...
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