Ex-Seatholder Sues NYSE; Deal Unaffected
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The New York Stock Exchange, set to complete its landmark merger tomorrow with electronic trading firm Archipelago Holdings, has been sued by a second former seatholder who claims the exchange should have told her about the pending Archipelago deal when she sold her seat last March.
Janet Hyman of Sarasota, Fla., sold her seat, or membership, on the NYSE in March 2005 for $1.5 million as the exchange secretly negotiated its deal to buy Archipelago.After the deal was announced in April 2005, seat prices rose sharply to about $3.5 million by the end of last year.
Ms. Hyman’s suit was filed last week in New York State Court. It claims the exchange breached its fiduciary duty and demands damages of $2.5 million. The suit should have no impact on the expected close of the deal. With that closing, seatholders’ memberships will convert to shares of the new public company, NYSE Group Incorporated.
