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].

 

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