A Collaboration with the University of Pittsburgh

Suit against former NYSE chairman Grasso sent back to state court

[JURIST] The lawsuit filed by New York Attorney General Eliot Spitzer against former New York Stock Exchange chairman Richard Grasso over Grasso's $187.5 million compensation was sent back to state court late Thursday by US District Judge Gerard Lynch. Although Grasso's attorneys argued the lawsuit should be in federal court because the SEC regulates the NYSE, Lynch sent the lawsuit back to state court because no federal statutes are involved and the subject matter involves a violation of New York's non-profit law against excessive executive compensation. AP has more. The complaint filed against Grasso and the NYSE can be found here [PDF].

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.