Securities Law | Expert Legal Commentary
February 26, 2010
Electronic Trading v. Banc of America: Federal Securities Laws Preclude Antitrust Laws re: Short Sale Litigation
Electronic Trading Group LLC v. Banc of America Securities LLC
By
Josh Lawler of Zuber & Taillieu and Joel B. Ginsberg
The U.S. Court of Appeals for the Second Circuit dismissed a putative antitrust case relating to short sale transactions on the grounds that federal securities laws precluded the application of antitrust laws to short sale transactions. The case, Electronic Trading Group LLC v. Banc of America Securities LLC (aka In re Short Sale Antitrust Litigation) 588 F.3d 128 (2nd Cir. 2009), marked the Second Circuit’s first application of the implied preclusion doctrine outlined by the U.S. Supreme Court in Credit Suisse Securities (USA) LLC v. Billing, 551 U.S. 264 (2007). The decision essentially insulates prime brokers who allegedly collude regarding short sellers from any Sherman Act claim, at least in the Second Circuit.
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About the Author
Josh Lawler is a Partner of Zuber & Taillieu, focusing on corporate law and securities and finance law.
Image Credit: ©iStockphoto.com/stockmachine
