Barclays fails to win dismissal of NY 'dark pool' lawsuit

Published 02/13/2015, 03:46 PM
Updated 02/13/2015, 04:20 PM
© Reuters. The Barclays logo on their building in Times Square, Manhattan, New York
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NEW YORK (Reuters) - A New York judge on Friday rejected Barclays Plc's effort to dismiss state Attorney General Eric Schneiderman's lawsuit accusing it of defrauding clients about its private securities trading platform, known as a dark pool.

Justice Shirley Werner Kornreich of the State Supreme Court in Manhattan said it was premature to dismiss Schneiderman's claim under the state's Martin Act, a powerful law used to fight securities fraud.

© Reuters. The Barclays logo on their building in Times Square, Manhattan, New York

The judge also dismissed a claim that Schneiderman tried to bring under the state's Executive Law, saying that statute does not provide a basis to bring a standalone claim.

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