Richard Grasso Sues NYSE

by Glen Shapiro, LawAndTax-News.com, New York

22 July 2004

Former head of the New York Stock Exchange, Richard Grasso has made good on his promise to counter-sue his former employer, claiming breach of contract and alleging that his successor, John Reed has defamed him.

Responding earlier in the year to the news that New York's Attorney General, Eliot Spitzer, had launched a lawsuit against him over his more than $200 million combined pay and severance package, Mr Grasso wrote in the Wall Street Journal:

"I have instructed my lawyers to file a counterclaim for the compensation that is still owed to me, as well as to seek appropriate damages for the leaks orchestrated by Mr Reed. Those who thought they could break me with their repeated media leaks badly underestimated my character and resolve. I look forward to addressing them in court where they can no longer hide behind Mr Spitzer's cloak."

The former stock exchange boss additionally pledged in his Wall Street Journal article to donate any 'winnings' to charity, explaining that: "I will derive considerable pleasure knowing that some public good ultimately resulted because of the immoral and dishonest behaviour of those who forced my departure and besmirched my name."

The NYSE is said to be seeking over $100 million in damages, and has argued that he misled the board of directors over his pay package. Mr Grasso, for his part, is seeking $50 million in compensation for the stock exchange's making public of what he claims are false statements about him.

Speaking to the Associated Press this week, spokesman for the former NYSE boss, Eric Starkman suggested that:

"This is one step in the process and we are confident that as the case progresses the attorney general's claims will prove to have no merit and that Mr Grasso is the only one entitled to any recovery in this matter."

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