The Third Circuit on Wednesday dismissed an investor’s suit alleging certain Philadelphia Stock Exchange investor groups’ trading strategies had deprived other investors of Pfizer Inc. dividends, saying alleged threats to the general “integrity of the market” are not sufficient basis for a claim.

In a nonprecedential opinion, a three-judge panel upheld a district court’s decision that I. Stephen Rabin had no basis to sue because he had not alleged the investor groups had spread any specific misinformation or withheld material facts and that enforcing a generally “fair and nonmanipulated market” would stretch securities laws too far.

The stock exchanges are represented by Stephen J. Kastenberg, Paul Lantieri III and John W. Scott of Ballard Spahr LLP.

Read the full article here. Subscription may be required.

Related Practice