Providence named Lead Plaintiff is Wall Street lawsuit - ABC6 - Providence, RI and New Bedford, MA News, Weather

Providence named Lead Plaintiff is Wall Street lawsuit

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By: Dee DeQuattro

Email: ddequattro@abc6.com

Twitter: @deedequattro


Providence
has been named Lead Plaintiff in a groundbreaking lawsuit against Wall Street for alleged high frequency trading.

The suit alleges that public stock exchanges, trading firms, and brokerage firm were using high-speed trading to manipulate market and profit at the cost of institutional and public investors including Providence’s retirees.

According to the complaint these groups had access to information not available to the public about investor’s trades. The suit alleges that these groups used this information to defraud the public and enrich themselves.

The suit claims this activity took place in five ways; electronic front-running, rebate arbitrage, slow-market (or latency) arbitrage, “spoofing” and “layering,” and “contemporaneous trading.”

“We are holding Wall Street accountable for their actions,” said Mayor Angel Taveras of Providence, Rhode Island.  “We have joined forces with national union leaders and other government agencies to demand justice for investors.”

The suit was filed in U.S. District Court for Southern District of New York. Other Lead Plaintiff’s include Plumbers and Pipefitters National Pension Fund, Employees’ Retirement System of the Government of the Virgin Islands, State-Boston Retirement System, and Första AP-fonden  (Sweden). The Plaintiff’s will be represented by the law firms of law firms of Robbins Geller Rudman & Dowd LLP, Motley Rice LLC and Labaton Sucharow LLP.

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