Post by kranker on Feb 4, 2007 12:42:30 GMT -4
July 11, 2006
Novastar Holders Sue Broker-Dealers, Charge Manipulation
40 individual investors in Novastar Financial (nyse: NFI - news - people ), a Kansas City specialty finance company, have filed suit in a California state court against 11 of Wall Street's biggest firms, alleging the firms are responsible for artificially suppressing Novastar stock by skirting stock clearing and settlement rules. The banks are trying to get the case moved to California federal court.
But brokers are under attack elsewhere. The Novastar holders' lawsuit attempts to hold 11 Wall Street firms responsible for allowing, and even arranging, manipulative trading that they claim has wiped out half the value of the stock.
The firms targeted in the suit, Bank of America (nyse: BAC - news - people ), Bank of New York (nyse: BK - news - people ), Bear Stearns (nyse: BS - news - people ), Citigroup (nyse: C - news - people ), Credit Suisse (nyse: CSR - news - people ), Deutsche Bank (nyse: DB - news - people ), Goldman Sachs (nyse: GS - news - people ), Lehman Brothers Holdings (nyse: LEH - news - people ), Merrill Lynch (nyse: MER - news - people ), Morgan Stanley (nyse: MWD - news - people ) and UBS (nyse: UBS - news - people ), control the prime brokerage business, which includes facilitating and financing trades for hedge fund clients, among other services.
Most of the banks either said they wouldn't comment on the lawsuit or didn't return calls for comment. Merrill Lynch and Citi said the suit is without merit.
cmkxunitedforum.proboards70.com/index.cgi?board=brokerfraud&action=display&thread=1154105985
Novastar Holders Sue Broker-Dealers, Charge Manipulation
40 individual investors in Novastar Financial (nyse: NFI - news - people ), a Kansas City specialty finance company, have filed suit in a California state court against 11 of Wall Street's biggest firms, alleging the firms are responsible for artificially suppressing Novastar stock by skirting stock clearing and settlement rules. The banks are trying to get the case moved to California federal court.
But brokers are under attack elsewhere. The Novastar holders' lawsuit attempts to hold 11 Wall Street firms responsible for allowing, and even arranging, manipulative trading that they claim has wiped out half the value of the stock.
The firms targeted in the suit, Bank of America (nyse: BAC - news - people ), Bank of New York (nyse: BK - news - people ), Bear Stearns (nyse: BS - news - people ), Citigroup (nyse: C - news - people ), Credit Suisse (nyse: CSR - news - people ), Deutsche Bank (nyse: DB - news - people ), Goldman Sachs (nyse: GS - news - people ), Lehman Brothers Holdings (nyse: LEH - news - people ), Merrill Lynch (nyse: MER - news - people ), Morgan Stanley (nyse: MWD - news - people ) and UBS (nyse: UBS - news - people ), control the prime brokerage business, which includes facilitating and financing trades for hedge fund clients, among other services.
Most of the banks either said they wouldn't comment on the lawsuit or didn't return calls for comment. Merrill Lynch and Citi said the suit is without merit.
cmkxunitedforum.proboards70.com/index.cgi?board=brokerfraud&action=display&thread=1154105985