Cantor Fitzgerald Exploited Relationship With BGC, Suit Says

Law360, New York (March 9, 2012, 10:46 PM EST) -- Investment bank Cantor Fitzgerald LP was hit with a shareholder derivative suit in New York state court Friday brought by BGC Partners Inc. investors who claim the company's relationship with Cantor caused it to enter into debt and equity transactions that hurt its shareholders.

The International Painters and Allied Trades Industry Pension Fund launched its suit on behalf of nominal defendant BGC, a Cantor spinoff, claiming an equity sale diluted the company's shares for no reason but to benefit Cantor.

The suit, which also names members...
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