Hedge Fund Sues Top Brokers For Naked Short Selling

Law360, New York (April 17, 2006, 12:00 AM EDT) -- A hedge fund is suing a slew of top brokerage firms, saying they used secret insider agreements to cheat their customers.

The federal suit, filed by Quark Fund LLC last week in the U.S. District Court for the Southern District of New York, names financial services powerhouses Bear Stearns Companies Inc., Citigroup Inc., Goldman Sachs & Co. and Lehman Brothers Inc, among others.

Quark’s complaint marks the second antitrust case filed against high-profile brokerages in the past week, with similar charges brought in the same court...
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