The U.S. Supreme Court won’t review whether investors can sue over enabling the fraud of an independent third party and whether market manipulation can exist when the defendant didn’t make any trades.
Prominent exchanges including Nasdaq and the New York Stock Exchange in August asked the Supreme Court to consider private suits for third-party liability and market manipulation without trading activity. The court Oct. 9 declined to take a look at the case.
The investors said the exchanges misled them about products sold to high-frequency trading firms, which allegedly created a two-tiered system to the investors’ disadvantage. The trial court ...
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