Justice Shirley Werner Kornreich of the State Supreme Court in Manhattan has rejected Barclays Plc’s effort to dismiss state New York Attorney General Eric Schneiderman’s lawsuit accusing it of defrauding clients about its private securities trading platform, known as a dark pool. Barclays had asked the court to throw out the case, arguing the state had not shown its clients were harmed.
Justice Kornreich said it was premature to dismiss A.G. Schneiderman’s claim under the state’s Martin Act, a law used to fight securities fraud.
Justice Kornreich 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.