NEW YORK – A market whistleblower represented by Hagens Berman since 2011 provided information to the Securities and Exchange Commission that culminated today in a near-record $14 million civil penalty against the New York Stock Exchange and two affiliated exchanges in part for NYSE’s failure to disclose material aspects of the operation of its exchanges, specifically its order types. 

“Hagens Berman’s SEC whistleblower client Haim Bodek teamed up to investigate and develop information and analysis that was brought to the SEC for investigation of alleged unlawful order type operations at NYSE that were undisclosed by the exchange,” said Shayne Stevenson, partner and head of the whistleblower practice at Hagens Berman. “The information provided by Dodd-Frank whistleblower Haim Bodek helped lead to this successful SEC enforcement action.”

In its press release issued today, the SEC announced settlement of charges against NYSE and two affiliated exchanges for several regulatory failures. NYSE and its affiliated exchanges have agreed to pay a $14,000,000 civil penalty. NYSE’s securities law violations settled with the SEC include failure to disclose material aspects of its operation of exchange order types, specifically violating Section 19(b)(1) of the Exchange Act, according to the SEC.

Today’s fine against NYSE is not the first successful whistleblower claim brought by Haim Bodek and his whistleblower law firm, Hagens Berman. In January 2015, the SEC announced that two exchanges formerly owned by Direct Edge Holdings (and since acquired by BATS Global Markets, the second-largest financial exchange in the country) agreed to pay a record-breaking $14 million penalty to settle charges that the exchanges failed to accurately and completely disclose how order types functioned on its exchanges, and for selectively providing such information only to certain high-frequency trading firms.

“Our client Mr. Bodek was also the whistleblower behind what was then the largest fine levied by the SEC against a financial exchange when it penalized BATS Global Trading also in the amount of $14,000,000 in January of 2015,” Stevenson said. “Mr. Bodek’s continued whistleblowing activity helps protect investors and showcases the effectiveness of the SEC whistleblower program and the great work being done by SEC Enforcement in policing our exchanges.”

Haim Bodek’s attorney, Hagens Berman partner and head of whistleblower practice Shayne Stevenson, is available to speak regarding the implications of the case and other trends in whistleblower litigation. To schedule an interview, please contact the firm’s media contact, Ashley Klann at 206-268-9363.

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with 11 offices across the country. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contacts
Ashley Klann
[email protected]
206-268-9363