$5 Billion High-Frequency Trading Suit Dismissed in Win for Exchanges
(Bloomberg) -- Nasdaq Inc., Cboe Global Markets Inc. and Intercontinental Exchange Inc. won the dismissal of a $5 billion lawsuit alleging they gave unfair advantages to high-frequency traders.
U.S District Judge Jesse Furman on Monday threw out the proposed class action lawsuit filed by plaintiffs who claimed policies favoring HFT produced high fees for the exchanges but caused other traders $1 billion in losses each year for five years.
The judge said the plaintiffs failed to present evidence to show they suffered even one trading loss tied to the exchanges’ alleged illegal conduct. Their only evidence was contained in reports by an expert witness whose work Furman said wasn’t sufficiently tied to the facts of the case and used unreliable methods.
“It follows that plaintiffs cannot establish that they were harmed by defendants’ conduct,” he said.
A representative for Nasdaq declined to comment on the judge’s ruling, while Cboe and ICE didn’t immediately respond to messages seeking comment. Lawyers for the plaintiffs also didn’t immediately respond to a request for comment.
Read More: BI Litigation Watch: Providence v. Bats, et al.
The case is City of Providence v. Bats Global Markets Inc., 14-cv-02811, U.S. District Court, Southern District of New York (Manhattan).
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