Bragar Eagel & Squire, P.C. Appointed Co-Lead Counsel to Fight Manipulative Options Trading on the Philadelphia Exchange

Rabin v. NASDAQ OMX PHLX LLC, et al., United States District Court for the Eastern District of Pennsylvania.

The action alleges widespread manipulation of call options on the Philadelphia exchange by market makers and brokers.  For several years, market makers and brokers have exploited their trading and margin privileges to enter into millions of prearranged purchases and sales of call options in dividend paying stocks and exchange traded funds.  The market makers are supposed to use their privileged status to facilitate a fair and orderly market for investors.  Instead, the complaint alleges that the market makers have abused their status to make manipulative trades for their own account.

The case is brought on behalf of writers of call options for dividend paying stocks and EFTs that were damaged by the scheme.

Persons who may have held short call positions or wish to discuss this action may contact David J. Stone.

A copy of the Corrected Second Amended Complaint can be viewed here.