Berger & Montague filed suit on June 6, 2006 against the Philadelphia Stock Exchange and six Wall Street investors  on behalf of a class of Class A shareholders represented by plaintiff Chuck Ginsburg.  The key allegations are that the management and the Board of Governors of the Philadelphia Stock Exchange made deals with the six Wall Street firms that would result in the transfer, by mid-July 2006, of 90% of the equity of the stock exchange from the Class A holders (many of whom were the original seat owners prior to the demutualization of the Philadelphia Stock Exchange in 2004) to the Wall Street firms and PHLX management.  Despite being diluted from 100% to below 10%, the original shareholders were not to be adequately compensated for such a radical change. (See attached complaint for full details.)

Defendants in the case are the Philadelphia Stock Exchange and its Board of Governors, as well as the six Wall Street investors (UBS Securities, LLC; Morgan Stanley & Co., Inc.; Citigroup Financial Products, Inc.; Credit Suisse First Boston Next Fund Inc.; Citadel Derivatives Group, LLC; and Merrill Lynch, Pierce Fenner & Smith).  Lawrence Deutsch (215) 875-3062 and Robin Switzenbaum (215) 875-4679 are the principal attorneys at Berger & Montague litigating this matter.