Settlement OKd in Case Against Brokers

The Justice Department’s antitrust settlement with 24 Nasdaq brokerage firms received court approval, as a judge turned aside the objections of attorneys in a related case filed by investors. U.S. District Judge Robert Sweet in New York ruled that the settlement serves the public interest in promoting a competitive market for stocks traded on Nasdaq. The settlement, announced in July, resolves government allegations that 24 Nasdaq market makers rigged stock prices and forced investors to overpay for Nasdaq stocks. It allows the government to tape-record conversations between brokers to make sure firms aren’t colluding to set stock prices. Those tapes can’t be used by private investors as evidence in any future litigation they may have against the firms. The Justice Department settlement with Merrill Lynch & Co., Goldman, Sachs & Co., Paine Webber Group Inc. and others had been opposed by attorneys for private investors who filed a related antitrust lawsuit. Robert Skirnick, an attorney who represents private investors suing several brokerages, said he is considering an appeal of the tape secrecy provision.