'Naked Short' Suit Belongs In NJ State Court, High Court Told

Law360, New York (November 2, 2015, 4:58 PM EST) -- Investors suing Merrill Lynch and other Wall Street giants over an alleged naked short selling campaign have urged the U.S. Supreme Court to uphold a Third Circuit decision that found their lawsuit properly belonged in New Jersey state court.

In a brief filed Oct. 23, shareholders in Escala Group Inc., the target of the alleged short-selling campaign, said their claims were brought under the Garden State’s anti-racketeering statute, not federal securities laws, and should not be forced to be heard in federal court as the defendant...
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