Travelzoo Founder Should Dodge Investor Lawsuit, Judge Says

Travelzoo founder Ralph Bartel should escape a shareholder lawsuit seeking to recover $2 million in profits his investment firm made on alleged “short-swing” trades, a magistrate judge said.

Securities law prohibits corporate insiders from making so-called short-swing trades, in which stock is purchased and then sold within six months. But Bartel’s transactions fall under an exemption for trades involving a director that were approved by a special committee of the board or by a majority of shareholders, Magistrate Judge Sarah Cave said in a Friday report.

Cave, in the US District Court for the Southern District of New York, ...