Lawsuit hits US exchanges, brokerage companies
Sunday, 20 April 2014
NEW YORK, Apr 19 (Reuters): Dozens of the largest US stock exchanges, brokerages and high-frequency trading firms were hit with a class action lawsuit by the capital of the state of Rhode Island, accusing them of manipulating the US securities markets.
The lawsuit was filed on Friday in Manhattan federal district court, as the high-speed trading industry came under greater scrutiny following the publication last month of author Michael Lewis' book "Flash Boys: A Wall Street Revolt."
A number of regulators have said they are probing the industry, including the Justice Department, Securities and Exchange Commission and Commodities Futures Exchange Commission.
The proposed securities class action was brought by the city of Providence, Rhode Island, on behalf of investors who bought stock in the United States from April 2009 to present.