Bloomberg Law
March 14, 2023, 7:10 PM

1-800-Flowers Investor Appeals Short Swing Trade Suit Rejection

Martina Barash
Martina Barash

An owner of Inc. stock said Tuesday that he’ll appeal a ruling blocking his ability to sue on behalf of the company over short-swing trading.

The ruling Monday by the US District Court for the Eastern District of New York held that company insiders’ alleged violation of the short-swing ban, by itself, doesn’t confer standing to sue.

The court dismissed the long-running shareholder derivative suit, in which a defendant was at one time ordered to disgorge $4.9 million in profits. And it addressed a matter of apparent first impression.

Magistrate Judge James M. Wicks said he knew of no ...