Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Broker Must Face Companies’ Suits Over Short-Swing Profits

Sept. 25, 2019, 3:59 PM

Two companies can pursue their suits against a broker and his firm for profits stemming from an allegedly manipulative trading program, the Southern District of New York ruled.

Guy Gentile and Bahamas-based MintBroker International Ltd. unsuccessfully argued that a federal law requiring certain investors to disgorge any profits from short-swing share price variations shouldn’t apply to them, the U.S. District Court for the Southern District of New York said Sept. 24.

Federal securities law bars statutory insiders—including officers, directors, and those who own more than 10% of any class of a company’s securities—from profiting off of short-term share price fluctuations. ...