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Famous "Big Tobacco" Lawyer Launches Class Action Lawsuit Against HFT

Tyler Durden's picture




 

In 1994 a lawyer did what most thought was impossible: he took on big tobacco on behalf of the state of Mississippi and won a record $368.5 billion judgment paid out by the 13 biggest tobacco companies to cover the cost of treating illnesses related to smoking. 20 years later he is trying the impossible again, this time launching a class action lawsuit against High Frequency Traders, and specifically 13 stock exchanges and subsidiaries on behalf of Harold Lanier "individually, and on behalf of all others similarly situated". Ironically, the lawyer behind the lawsuit is also named Michael Lewis, no relation to the famous author whose book simplifying just how rigged the market has become as a result of HFT (and of course the Fed, but that is the topic of the forthcoming "Liberty 33 Boys").

And while most comparable lawsuits have been mocked because the HFT lobby (understandably) believes that no jury of non HFT peers can ever "grasp" the sophisticated predation and parasitism that is HFT, Lewis simplifies it: "This is a case about broken promises," the 40-page document begins. It is signed by eight different lawfirms, mostly from the south, which in recent years seem to have the most luck in explaining complex things to simple people. It is also just the first of many comparable lawsuits that will be filed in the coming weeks, now that the anti-HFT crusade has such a prominent participant as the many who extracted a a third of a trillion from big tobacco. Because if he smells blood, so will every one else.

From the lawsuit:

This case is about broken promises. Plaintiff Harold Lanier, and other Subscribers, (collectively “Subscribers”) entered into Contracts with the defendants, all of which are securities exchanges (“Exchange Defendants”), to receive electronic market data services offered by the Exchange Defendants. The Exchange Defendants promised to be fair by: (1) providing the market data service in a non-discriminatory manner; and (2) providing the Subscribers with “valid” data (i.e., the actual data that is accurate and not stale). The Exchange Defendants did not live up to either promise.

 

First, the Exchange Defendants failed to live up to their promise to provide Subscribers with the market data in a non-discriminatory manner. In an effort to increase their profits, the Exchange Defendants entered into lucrative side deals with certain customers to whom the Exchange Defendants sold advance access to the market data that Subscribers had contracted for through (1) direct feeds (“Private Feeds”) and (2) co-location services (“Preferred Data Customers”). As detailed in Section IV.C. of this Complaint, for a price, the Exchange Defendants provided access to the data to Preferred Data Customers through arrangements that guaranteed they would receive the data substantially in advance of the Subscribers.

 

Unbeknownst to Subscribers, these side deals resulted in Subscribers receiving data that was obsolete because the Preferred Data Customers had advance access to the data.

 

Second, the Exchange Defendants failed to live up to their promise to provide Subscribers with valid data. The validity of the data is what made the electronic data services offered by the Exchange Defendants valuable to the Subscribers. But by entering into the side deals with the Preferred Data Customers, the Exchange Defendants effectively provided to Preferred Data Customers the data that Subscribers had paid for, while giving Subscribers  data that was stale. In other words, as a result of the side deals, the Exchange Defendants deprived the Subscribers of the fundamental benefit of their Contracts, i.e., fair access to valid data. Plaintiff and the other Subscribers thereby suffered injury and damage as a result of the Exchange Defendants’ conduct.

 

* * *

 

This Complaint alleges ordinary state law claims, the crux of which revolve around the sale of stale data to Plaintiff. In other words, the gravamen of Plaintiff’s Complaint is that the services he purchased from the Exchange Defendants (specifically, the data provided through the exchanges) were not delivered as promised. This Complaint does not involve any claims regarding the purchase or sale of securities or investors’ losses, nor does Plaintiff seek  any relief related to the purchase or sale of any security.

And an interesting excerpt from the lawsuit framing the concept that is the crux of the issue: time.

The Significance of Time in the Financial World

 

Market data is purportedly made available to the Processor and Preferred Data Customers at the same time. However, the Exchange Defendants actually transmit the data to Preferred Data Customers before they send the same data to the Processor, such that the data arrives at the Processor well over a thousand microseconds later than the same data distributed over faster channels reaches the Preferred Data Customers. This does not even account for  the additional time required to subsequently transmit the data from the Processor to the Subscribers.

 

 

In human perception, those microseconds might appear unimportant, far less time than the blink of an eye. But in today’s financial markets, one thousand microseconds is a virtual eon. And given that it only takes the Preferred Data Customers a handful of microseconds to cancel orders and  execute trades, it is more than enough time for them to generate tremendous profits from the advance receipt of the market data.

 

The illustration below shows the flow of market data from the exchanges to both Subscribers (through the Processor) and to Preferred Data Customers. Through the use of high speed Private Feeds and co-location services, the Preferred Data Customers can receive the data in as little as one microsecond and can begin acting on the data immediately. Meanwhile, due to the (1) size of the connection of the feed between the Exchanges and the Processor, (2) the procedure involved in transmitting data between the Exchanges and the Processor, and (3) the co-location of Preferred Data Customers’ computer servers with the Exchanges’ servers, the data for Subscribers is still en route from the Exchanges to the Processor long after the Preferred Data Customers have received, and acted on, the information to their advantage. On average, the data is received by the Processor approximately 1,499 microseconds after the Preferred Data Customers receive it. The Processor then aggregates the data and only then is it disseminated to the Subscribers.

Much more in the full lawsuit below, which we urge HFTs to read because very soon they will have to explain to a jury of Joe Sixpacks just why what they do is "fair".

 

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Sat, 06/07/2014 - 10:07 | 4832275 PlusTic
PlusTic's picture

i hope this is the first of 100,000 such suits that bankrupt these criminals...fukk them!

Sat, 06/07/2014 - 10:13 | 4832281 kliguy38
kliguy38's picture

We are discussing the SAME criminal justice system that has existed for the past 10 years?????? hehehehehhee....I don't think you'll see any damage to the "game" from these "suits" hehehehhehee

Sat, 06/07/2014 - 10:20 | 4832292 TheFourthStooge-ing
TheFourthStooge-ing's picture

OT: Jen Psaki twitter fit, blames RT over rumor of her being fired. RT responds with #SavePsaki because they'd hate to see her leave.

http://rt.com/news/164112-jen-psaki-fired-rt/

Sat, 06/07/2014 - 10:37 | 4832311 AlaricBalth
AlaricBalth's picture

One of the co-counsels in the Mississippi tobacco suit, Paul Minor, was targeted by Karl Rove and the US Attorneys Office and ended up doing Fed Time.

"As a result of the tobacco lawsuits, some Republican politicians and tobacco industry lobbyists — such as now-Mississippi Governor Haley Barbour — appear to have become implacable foes of the trial lawyers who had frustrated them and their clients. Barbour returned to lobbying in 1997, after a four-year stint heading the Republican National Committee, and became one of the main lobbyists for Phillip Morris, which spent nearly $16 million that year in lobbying fees."

http://www.talkleft.com/story/2008/6/24/22288/5386/otherpolitics/Karl-Ro...

If you are going to fight Big Money, be prepared for an assault from TPTB from all fronts.

Sat, 06/07/2014 - 10:59 | 4832333 Marco
Marco's picture

They got to Minor because of politics, but they didn't need to manufacture evidence to do it ... just another scummy lawyer.

Guarantueeing home loans for a judge's girlfriend and then paying them off, just helping out a friend my ass.

Sat, 06/07/2014 - 11:25 | 4832361 CheapBastard
CheapBastard's picture

More power to them. They go where gubmint regulators, AGs, SEC and the DOJ dare not tread.

Sat, 06/07/2014 - 17:47 | 4833175 max2205
max2205's picture

Go get them...I should get at least 50k out of this less 49k legal expense.

Love the legal system

Sat, 06/07/2014 - 11:31 | 4832371 WillyGroper
WillyGroper's picture

Ever listen to Haley Barbour?

He's got an extra chromosome.

Sat, 06/07/2014 - 10:37 | 4832312 AllWorkedUp
AllWorkedUp's picture

 Exactly. The tribe will find a tribe judge to make any suit against the tribal banksters simply go away.

We have no legal system when it comes to tribal banksters.

Sat, 06/07/2014 - 11:22 | 4832356 disabledvet
disabledvet's picture

There is a point where if we say these things this way long enough it becomes not only wonderful satire...but truly does rise to the level of. Perfect Parody.

"You phucking Jew." I mean what better line to start your stand up comedy routine. Point some hapless phuck out in the crowd (preferably someone of Asian descent since they're overachieving phucks too) and say..."yeah, you. You heard me! Asshole."

See if the crowd gets it.

"I admit it. I'm a phucking Jew. Two hundred years one of the women in my family became weak...and succumbed. Ever since then...

Sat, 06/07/2014 - 16:51 | 4833080 The Internation...
The International Jew's picture

You should not hate the jew for anything other than the Talmud.  They are knowing of devine, and following, devine geometry, teachings, and in some, ways, devine ways of life.  you should learn from them, and not be so arrogant, as to assume those who have gained control over you, as if you were fucking CHATTLE, were so stupid as you would like to pretend.  We learn from our enemies, before destroying them. Always.

Sat, 06/07/2014 - 11:33 | 4832376 11b40
11b40's picture

Maybe...but this is the most encouraging thing I have seen yet that might lead to some real action.  The lid needs to be blown off this thing, and a good country lawyer with a jury of solid country folk could be just the recipe for stirring up a shitstorm.  Michael Lewis has done it one time to Big Tobacco, and he will be the Home Town favorite with a Mississippi jury pool.  As the article explains, Lewis is taking a simple, straight-forward approach to the suit....it is cheating and theft.  You think ordinary Americans can't understand when sheating is going on?  When it gets boiled down and explained with simple homilies and real life examples, it becomes a matter of right vs wrong.

Another thing, too, is if this is fought out in a MS courtroom, it will be MUCH different than if in Manhattan.  Just send in a battery of high priced, slick lawyers in their $4,000 suits and see how it goes over.  I assure that there is a ton of hostility toward the Big Men from up North who look down on the South in general and MS espceially.

Plus, the other statement about lawyers everywhere sensing blood in the water may well be true.  100's of lawsuits in every state could be fantastic, and way too big for the media to ignore.  

Let's face it, there are many ways for lawyers to go after this with individual clients or class action suits.  Stocks, Bonds, Commodities of all sorts, Pension Funds, and on and on.  If the floogdgates open up, every trial will bring more discovery and ammo for the next one.

My secret prayer is that a ZHer or 2 could somehow be on this jury.

Sat, 06/07/2014 - 12:55 | 4832604 kchrisc
kchrisc's picture

The outcome has already been decided, this is just the theater for the sheeple.

When the final curtain falls, Goldman will own and control more.

"More, more."

Sat, 06/07/2014 - 10:16 | 4832287 Georgia_Boy
Georgia_Boy's picture

Shame that it's necessary, because the government can't do its fucking job and make sound rules.

Sat, 06/07/2014 - 10:24 | 4832297 Spumoni
Spumoni's picture

Why aren't Schapiro and MJ White named in this suit? They are at least as culpable as the exchanges.

Sat, 06/07/2014 - 10:27 | 4832303 Terminus C
Terminus C's picture

The rules are there, we (the people) just don't enforce them.

Sat, 06/07/2014 - 10:17 | 4832289 tarsubil
tarsubil's picture

This is just lawyers asking for their cut in the action just like it was with the tobacco lawsuit.

Sat, 06/07/2014 - 10:29 | 4832304 Terminus C
Terminus C's picture

but, but... I thought they brought down the tobacco companies and no one smoked anymore and that rainbows and unicorns abound!

Wait, are you saying that lawsuits are NOT the answer?

Sat, 06/07/2014 - 10:28 | 4832305 icanhasbailout
icanhasbailout's picture

That's exactly it. Mega payday for the lawyers, nothing for those who suffered the actual injuries.

Sat, 06/07/2014 - 10:59 | 4832337 Too Big 2
Too Big 2's picture

Justice will be done just as it has been done to the banks.....they will pay a small fine to settle and everyone will move on....Where is the DOJ, SEC, etc in all of this?  Oh, forgot, they are too busy going after tax havens, playing the race card, and paving the road to allow illegals access to the free good bags aka "entitlements" our country is so happy to give out... in exchange for votes....of course.

Sat, 06/07/2014 - 11:07 | 4832342 oklaboy
oklaboy's picture

so when does Corzine, Daimon, Blakenfeld et al do the perp walk?

Sat, 06/07/2014 - 10:13 | 4832279 Omen IV
Omen IV's picture

Fuck em hard, fuck em deep!

Sat, 06/07/2014 - 10:15 | 4832285 buzzsaw99
buzzsaw99's picture

the world needs billionaire lawyers too i guess. thanks bernanke.

Sat, 06/07/2014 - 10:18 | 4832291 Hulk
Hulk's picture

I smoke HFT's, and I would rather fight than switch !!!

Sat, 06/07/2014 - 10:22 | 4832296 snodgrass
snodgrass's picture

The "tobacco" settlement was another scam cooked up by Clinton and his fellow travelers - lawyers. Lawyers and the govt got a big chunk of money, the tobacco companies were granted a monopoly because anyone entering the market after them had to pay into the settlement, and tobacco users ( addicts) got the bill. The idea that the settlement paid for the health bills of tobacco smokers was a lie. Smokers tend to die earlier and hence never use the social security benefits they have paid for. The only ones who benefitted were the lawyers.

Sat, 06/07/2014 - 10:26 | 4832301 Spumoni
Spumoni's picture

True, but look at all the fun Bush and Cheney had spending the only surplus our gov't has had in ages! They had us in recession 22 days after being sworn in - a new record!

Sat, 06/07/2014 - 10:32 | 4832306 Terminus C
Terminus C's picture

There was no surplus.

There were cooked books, but no surplus.  How does one have a surplus when one is trillions of dollars in debt?

Oh and Red team bad, blue team good = gtfo. Truth is, purple team bad

No one here buys your partisan shit, so fuck off.

Sat, 06/07/2014 - 10:46 | 4832321 greatbeard
greatbeard's picture

>> How does one have a surplus when one is trillions of dollars in debt?

If you don't understand the concept of how that could happen, you are either fairly ignorant, or don't want to understand due to your own red team/blue team allegiance. 

One can have a positive cash flow and be in debt.  Most functioning US household do just such a thing.

Sat, 06/07/2014 - 10:55 | 4832328 WAMO556
WAMO556's picture

You wasted your time. Your idea about having a savings while being in debt is the same concept of trying to put out a firestorm with a garden hose.

Methinks that you don't understand what it is you are talking about.

Sat, 06/07/2014 - 11:55 | 4832436 11b40
11b40's picture

He understands what he is talking about.  It is you that seems not to grasp the concept of an annual operating budget.  

If every year, your operating budget is negative, the cummulative debt keeps growing by the amount of the deficit, plus interest.  If your annual budget starts producing a surplus, you are obviously reversing the trend and can start reducing the cummulative debt, in theory.

Sat, 06/07/2014 - 11:20 | 4832352 Urban Redneck
Urban Redneck's picture

To argue that a "surplus" existed is analogous to arguing that refinancing a 30-year traditional fixed mortgage into a 5-year interest only NINJA ARM generates "income".

Positive cash flow through an accounting gimmick is one thing, but that thing is not a surplus.

Sat, 06/07/2014 - 11:50 | 4832417 11b40
11b40's picture

It is simply amazing how many ignorant drive-by yoyos we have attracted here.

You can offer up all the reasons or excuses you want to, but the FACTS are that Clinton  produced a surplus in the annual budgets for the last 3 years he was in office.  The last time that had happened was 1969, and 1960 before that.

Check out this and educate yourself.  

http://www.davemanuel.com/history-of-deficits-and-surpluses-in-the-unite...

Sat, 06/07/2014 - 13:45 | 4832499 Urban Redneck
Urban Redneck's picture

No.

Neither Clinton nor Gingrich balanced the budget.

Bob Rubin and Larry Summers (with the GreenZirp & FASB assist & reach-around) took a negative cash flow and turned it into a positive cash flow, whithout them the cash flow would have remained negative.

Thank a Bankster (and Fat Larry) for that "balanced" budget.

Trying to pass off correlation as causation by calling it a FACT is like HuffPo stupid...

Sat, 06/07/2014 - 14:04 | 4832757 11b40
11b40's picture

The annual budgets are attributed to the current President in office.  History records the income for the year vs. the out go.  It is either in surplus or it is not.

Pick any year under any President and argue how or why the numbers came out as they did, but the Clinton budgets were in surplus for 3 years in a row.  Those are facts, and argue all day about it if you want to, but the facts remain the same.  Math is a hard thing to argue against.

http://www.davemanuel.com/history-of-deficits-and-surpluses-in-the-unite...

Since 1940, there have been 12 years that the annual budget was in surplus, and 62 years of deficits.

Sat, 06/07/2014 - 14:22 | 4832787 Cliff Claven Cheers
Cliff Claven Cheers's picture

While I applaud Clinton for doing a better job with the budget than others, it is still a bit of a shell game.  What happens when you account for the use of Social Security funds, is it still technically a budget surplus?  I think Regan and Greenspan started the process of using those funds.  Borrowing from the SS fund is still borrowing.

Sat, 06/07/2014 - 14:33 | 4832812 Urban Redneck
Urban Redneck's picture

You really don't get it.

THAT ACCOUNTING GIMMICK IS WHY RATES WILL NEVER BE "ALLOWED" TO RISE.

And BTW idiots can attribute a budget to whomever their feeble minds choose. However, budgets are written, debated and approved by the legislature, not the executive branch, which can only sign or veto them.

Failed logic, failed math, failed civics... banking, finance and how the world actually works might be a bit much.

Sat, 06/07/2014 - 15:31 | 4832939 11b40
11b40's picture

You really should brush up on your critical reading skills.  The original argument had to do with the difference between an annual budget and a cummulative deficit.

Fly off on whatever tangent you want to try and drive home some other point, but all I have been doing is presting basic facts, while you want to talk about reasons.

Do you dispute the FACTS?

Sat, 06/07/2014 - 16:02 | 4832981 greatbeard
greatbeard's picture

>>  The original argument had to do with the difference between an annual budget and a cummulative deficit.

WTF?

Sun, 06/08/2014 - 04:37 | 4833862 Urban Redneck
Urban Redneck's picture

What you have presented are not facts. Furthermore, you should really brush up on your reading skills. A budget "surplus" is impossible in the US (as opposed to a cash flow positive condition WITHIN a single year). Being generous-- the term is a misnomer, more accurately-- it is a FRAUD.

During the years when the "surplus" supposedly existed, only the cash payments that occurred WITHIN the fiscal year, for the expenses occurred within the fiscal year are factored into government math. It is one thing to amortize an expense over multiple periods when the expense applies or occurs in multiple periods, but amortizing a non-recurring single period expense over periods is FRAUD (except in US public accounting).

But perhaps that's a bit esoteric and forward looking since it involves not only basic arithmetic, but also the fundamental precepts of accounting... But the fraud of public accounting is also demonstrable on a historical basis, where only common sense and pulse is required to observe the lunacy you defend as logical. Since you seem to be under the impression that there was EXCESS money in government coffers in the 1990's, there is a very direct implication that you believe all the bills that needed to be paid were in fact paid. You do realize TO THIS DAY (and therefore during the 1990's) that US has not finished paying for Martin Van Buren's salary and continues to accrue interest expense for this cost each and every year (not some pension, his SALARY for the work performed in the White House in 1837, 1838, 1839, 1840, and 1841, as well as the salary of lowliest knob polisher on the White House payroll each of those years, and each year subsequent), but setting aside Services, the same holds true for Assets, the US hasn't even finished paying off the USS Maine or the USS Arizona or countless other Assets which no sane person could argue have any useful life left. So when does the US need to finish paying for Martin's labor, and when can the US finally forget the Maine?

Public accounting is a FRAUD. Going back to what I originally posted - positive intra period cash flow is NOT a surplus (excess).

Sat, 06/07/2014 - 10:51 | 4832325 WAMO556
WAMO556's picture

Really?

Sun, 06/08/2014 - 02:17 | 4833822 Blankenstein
Blankenstein's picture

When they talk about the surplus (or deficit), it refers to the finances of the government for ONE fiscal year, not the cumulative "wealth" of the government.  The debt of the goverment increased greatly during WWII and has continued its upward path to its current amount of ~ $18 trillion.  It supposedly did not grow during a couple of years of Clinton's term due to those years having small surpulses.  But the claim of these supluses is disingenuous, because instead of borrowing money in the form of public debt, they borrowed money in the form of intragovernmental holdings (government borrowing from itself).  Intragovernmental holdings increased under Clinton, whereas public debt decreased.  Increases in Intragovernmental holdings and public debt both increase our national debt.

 

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm

Sat, 06/07/2014 - 13:00 | 4832314 ebworthen
ebworthen's picture

True that.  I would point out that traders are addicts too (gambling).

Sat, 06/07/2014 - 10:36 | 4832310 ebworthen
ebworthen's picture

With smoking people have a choice; HFT not so much.

HFT is like forcing people to smoke even if they don't want to.

I'd bet this lawyer has an unfortunate boating accident while Bass fishing.

Sat, 06/07/2014 - 15:26 | 4832927 Sathington Willougby
Sathington Willougby's picture

No one has the right to blindly dump a load on a market.  But go ahead if that's what you want.  It won't be pretty.

Sat, 06/07/2014 - 10:49 | 4832322 Sudden Debt
Sudden Debt's picture

Yeah, but these boys have Obama on their payroll so... don't count on it.
Pré 2000 America still had sense of trong ethics.

Sat, 06/07/2014 - 11:27 | 4832365 disabledvet
disabledvet's picture

"WAS IT OVER WHEN THE JEWS BOMBED PEARL HARBOR! NOTHING IS OVER UNTIL WE SAY IT IS!!"

(Excellent speech Mr President. Even better than the last Pearl Harbor one!)

Sat, 06/07/2014 - 10:55 | 4832327 Kina
Kina's picture

No chance.....Judges are now all bought and paid for in full by Bankster Oligarchs...along with NSA data to reveal how they wipe their arse.

Sat, 06/07/2014 - 10:58 | 4832331 Conax
Conax's picture

Bitch slapping tobacco lawyers and smokers around the room is much less dangerous than going after the squid's golden goose.

The 368 billion never made it down here to pay for smoker's medical bills, either.  States took it and spent it.

So who gets the settlement, if any? Cheated traders won't see a nickel, that's for sure.

Sat, 06/07/2014 - 12:05 | 4832468 11b40
11b40's picture

Oh, OK.  I see your point.  So, let's just all give up.  After all, it's so much easier to bitch and moan than to actually try to do something.

I am very happy that big tobacco got the screws put to them and there have been a lot of benefits.  I was reminded of one of them last night at dinner.  It was a lovely spring Carolina evening, so we opted to take a table outside.  About half way through my meal, smoke from an adjacent table drifted over and changed the air I breathed.  I had forgotten that it was OK to smoke in the outside dining area.  Before those tobacco settlements, people lit up everywhere, like it was their God-given right...even in elevators.  The % of the population now smoking is about half now, too, and most will agree this is a very good thing.

Sat, 06/07/2014 - 13:15 | 4832642 Conax
Conax's picture

I would like to see HFT reined in, no doubt.

I play in a garage band with a virulent anti-smoker.  We have to make sure no foul fumes waft his way, too.

During breaks we often have a fire out back, he stands there in the billowing smoke from the brush and trash burning without the slightest complaint or discomfort.

Burning limbs, cardboard and old scrap wood= no prob.

Tobacco smoke= Alarm bells and tantrums.

The point I was making was that the lawsuits were disengenuous. They only raised prices on smokers, and the funds were fed into the general fund for the FSA.

That's all.

Sat, 06/07/2014 - 13:26 | 4832681 combatsnoopy
combatsnoopy's picture

Tobacco scapegoating only justifies the PRICE INELASTIC TAXES on tobacco.  Congress, the AMA, the FDA and teh HIPAA all need to be sued over this.

Tobacco = nicotine = NIACIN.  Niacin deficiency = tobacco addiction.   Niacin deficiency = metabolic issues that's EASILY remedied with vitamin B shots.  Yes libtards in Burbank can pay $20 on thursdays at Sprouts for their B shots without a prescription-WITHOUT LEGISLATIVE AID OR CARDS.  

Who else has access to this?   People with a prescription, and that's oNLY if you have a good doctor. 

If they care about health- well they don't.  Even the "feminists" are nasty sociopathic muggers. 

The anti-tobacco shenanigans is another stupid excuse for bullying in the form of guilt tripping, emotional manipulation, patronizing and violating the 8th AMendment in taxes.  Yet pot and heroine is legal -explain that one.  I'd rather be on the road with a tobacco smoker than a toker. 

Just the same as the gas tax (when poverty pimping liberals drive gas guzzling SUVs with a "Save Tahoe" sticker on the bumper on the equity line of their subprime teaser rate "bought" $700,000 property that's only worth $100,000), when liberal agencies like the FDA say NOTHING about the dangers of high fructose corn syrup but their Santa Clara busts McDs if they sell Happy Meal Toys, when the retarded boomers who ruined California elected politicians that bust chefs for making foie gras, shark fins....the 10.8% tax on finance corporations (there are no finance companies in California- Wells Fargo, Bain and Google Ventures don't count and BoA isn't located here anymore)...
other non-ethical violating things that go on in California.  Trouble is that China who owns this state has done NOTHING about it.
I'm ticked at China and the US boomers for allowing it. 

Sat, 06/07/2014 - 13:02 | 4832618 BlussMann
BlussMann's picture

Oh no, the serf trade will get a check for probably $1.39, the attorneys fees will be in the billions.

Sat, 06/07/2014 - 10:59 | 4832335 Fix It Again Timmy
Fix It Again Timmy's picture

Somebody, somewhere has got to start to apply the brakes to this financial malfeasance; isn't someone tired of being spit in the face, repeatedly?.....

Sat, 06/07/2014 - 11:05 | 4832338 garypaul
garypaul's picture

BIG TOBACCO COMPANIES ARE STILL HERE!

Sat, 06/07/2014 - 11:26 | 4832355 Urban Redneck
Urban Redneck's picture

And they have effective legal immunity from the serfs, because the States don't want their cash cows fucked with.

All these shysters did (other than walk away with hedge fund sized paychecks for themselves) was to further entrench the perverted symbiosis of big government and big business and ensure that no one ever gets any justice from the Just-US system.

Sat, 06/07/2014 - 12:08 | 4832475 11b40
11b40's picture

What's your point?  They may still be here, but their market in the U.S. is a fraction of what it was, and my clothes and hair don't smell like a freakin cigarette everytime I go to a restuarant or bar.

Sat, 06/07/2014 - 15:24 | 4832920 Sathington Willougby
Sathington Willougby's picture

Instead we get a bunch of social engineering sock puppets and a shit on bill of rights.

Sat, 06/07/2014 - 15:44 | 4832956 11b40
11b40's picture

Big Tobacco exersized their rights, for sure, for centuries.  They used those rights to lie and conceal what they knew about the effects of their product on living organizms, even covering up the effects of second hand smoke.  They used them to advertise product safety with real bought and paid for doctors on TV and in print.  They went after children in efforts to get them addicted in their early teen years.  Can you say Joe Camel?  They even worked with the military to get them put in field ration packs.  How's that for social engineering?

Well my Bill of Rights indicate to me that I don't have to breath the fucking pollution of a bunch of stupid (yes, if you smoke cigs, you are stupid), addicted people.  We put up with their inconsiderate and dangerous behaviour for far too long.

Now, we have put up with this shit from Wall Street bankers and their bought politicians for far too, too.  If lawyers can put a stop to these parasites sucking the blood of society, more power to them.

Sat, 06/07/2014 - 18:52 | 4833277 Sathington Willougby
Sathington Willougby's picture

Please the righteousness is a little much don't you think?

Yeah big tobacco did some rough stuff, but no one with half a brain took it too seriously.  Lots of people are coming after my kids with all kinds of horseshit, bottom line is I take care and the best thing I can do for them is that.  I don't look to lawyers to defend a morale standard for sure.

Sat, 06/07/2014 - 18:56 | 4833285 FredFlintstone
FredFlintstone's picture

My dad had a buddy in college who worked for a tobacco company putting a small pack of cigarettes and matches in every study carol in the library. So my dad got free cigs, was hooked and then continued to smoke for another 30 years.

Sun, 06/08/2014 - 08:09 | 4833948 ThisIsBob
ThisIsBob's picture

A popular guy on my campus (years ago) had the job of handing out little packs of 4 marlboros to everybody.  Used to be free on planes also.

Sat, 06/07/2014 - 11:13 | 4832346 jubber
jubber's picture

It's a shame this Lawyer doesn't sue the FED for fraud...or Blankfein, Dimon, Geitner and that scum Paulson as well while he is at it, it's all part of the same scam

Sat, 06/07/2014 - 11:16 | 4832348 Keegan11
Keegan11's picture

Fuck this attorney too. Thief - but then again, what better way to hammer a thief than with a scumbag thief!

Sat, 06/07/2014 - 11:24 | 4832358 Kina
Kina's picture

That Corzine isn't getting his arse ripped every night in prison is a crime in itself.

Sat, 06/07/2014 - 11:37 | 4832385 DannyTX
DannyTX's picture

I just hope they win the case.  I for one would qualify for some of the proceeds.  I have been a day trader for years.  You would not believe the difference in the order stack now vs. years ago.  They blink like a strobe light appearing and disappearing.  

Sat, 06/07/2014 - 12:01 | 4832453 Sathington Willougby
Sathington Willougby's picture

Exactly what are you entitled to by being a little guy?  A free ride on the Ferris wheel?  Even a Fair charges for that.

Sat, 06/07/2014 - 12:11 | 4832488 11b40
11b40's picture

He is entitled to fair and level playing field.  That what the exchanges promised this lawyer's clients, and is the backbone of the case.

Are we so far off the tracks that the whole concept of honesty and fair play has been lost on the general population?

Sat, 06/07/2014 - 15:31 | 4832938 Sathington Willougby
Sathington Willougby's picture

Can't anyone purchase that data?  What is the alleged crime?

Sat, 06/07/2014 - 15:48 | 4832964 11b40
11b40's picture

You either did not read the article, or you have no idea what you read.  Why are you here popping off when you don't even understand the subject?

Sat, 06/07/2014 - 18:47 | 4833254 Sathington Willougby
Sathington Willougby's picture

The articles on HFT on this site are tripe and goalseeking type pandering to a mob.  They don't bring actual data.  So yeah I don't read them to closely and the lawsuit of course is pages of legalease.

So what are the allegations.  

Data cost money.  Some data is better than other data.  Buy the best data if you need it, get the slow data if you are seeking longer term gain and you don't care too much about half a penny.  No participation trophies here.  Put on your big boy pants, if you want riskless returns then go work for the government.

Sat, 06/07/2014 - 12:00 | 4832446 Sathington Willougby
Sathington Willougby's picture

This in no way drives up trading costs.  Yeah right, there goes the big time lawyers looking out for the little guys again.

Sat, 06/07/2014 - 12:13 | 4832494 11b40
11b40's picture

So, tell me how it affects trading profits.  Is this a victimless crime?

Sat, 06/07/2014 - 15:28 | 4832932 Sathington Willougby
Sathington Willougby's picture

Nice assumption, what crime has been established?

Sat, 06/07/2014 - 15:56 | 4832974 11b40
11b40's picture

That is what this lawsuit is going to determine.  Is front-running legal?  Manipulating markets up and down and skimming every tick?  Exchanges offering "equal access" to one class of clients for a fee, and then offering another set of clients the chance to fleece the first group?

Guess we will find out, but if we had a functioning SEC, they would have found plenty of crimes long ago.  Crimes have not been 'established' because they simply have not been investigated.

Sat, 06/07/2014 - 18:46 | 4833239 Sathington Willougby
Sathington Willougby's picture

Those are some strong allegations.  Just because things are moving faster than the human traders doesn't mean they are cheating.  The human pit traders sure knew how to hose the public.  Maybe that's why no one is really clamoring for them to come back.  Have you noticed?

Sat, 06/07/2014 - 18:50 | 4833272 FredFlintstone
FredFlintstone's picture

Front running is illegal dipsh!t. Plain and simple. Get the facts/quit trolling/peddling crap.

Sat, 06/07/2014 - 12:09 | 4832484 orangegeek
orangegeek's picture

HFT's exist because exchanges provide space on their racks in their data centers.

 

exchanges getting sued?  sounds about right.

Sat, 06/07/2014 - 12:46 | 4832589 q99x2
q99x2's picture

Look what these criminals did to Detroit and NYC is even falling apart, somedays it explodes on its own, They are of the same scum makeup that attacked the World Trade Centers. Arrest George Bush. Bernie Madoff him and these crooks too. Sombody call the police.

Sat, 06/07/2014 - 13:07 | 4832633 Incubus
Incubus's picture

Turn the parasites on one another.

 

Lawyers vs Banksters. 

 

No matter who wins, we lose.

 

 

Sat, 06/07/2014 - 13:35 | 4832695 combatsnoopy
combatsnoopy's picture

Hitlery Clinton was afraid of the smart people.  Has anyone noticed how threatened the Clintons are of competancy?

The Air Force and MIT developed the internet.  Guess what?  THe Clintons poo'ed on the Air Force and took credit for the Gore Act (only $600 million invested by Uncle sam, just 150% more than what James Cameron got for the movie Avatar). 

Gen X talent immigrants from Asia and Eastern Europe (or children of these immigrants) were the super smart and competative tech savvy people whose backs tech was built on.  Before Clinton passed Deregulation that enabled the threatened baby boomers to rob people in need of shelter, forcing people under very undesirable shared living conditions with their favorite @$$hole inducing drugs in the mixture.

Then note the "OVER REPRESENTED MINORITY CLAUSE" in affirmative action when they opened the borders so underperforming and underrepresented minorities illegals can trash and rob people in the US. 

Then. 

Failing to get China to remove barriers to the US financial sector in 1995 after the globe bought off US Treausires, creating a very dangerous monopoly of power of the US government over the citizens.   Before the red tape to IPOs, before the regressive progressive regressive tax code for growing corporations. 

Note the racism behind the shark fin ban.  Note the racism by Apple (Clinton's buddies?) against Samsung. 

Note the fact that EB-5 investments are only allowed in real estate/construction and not businesses, oil or raw materials? 

Note the theft of US Citizens for the benefit of criminals, which Robert Rubin and Larry Summers aided? Which makes them criminals themselves. 

Note the price inelastic taxes on republican owned entities including oil and tobacco. :)

Tobacco's Lanier  is suing against the HFTs.   This faked out market is a product of the CLinton influence.  
The Clinton influence HATES smart people like Lanier.   I hope that people are willing to protect him- he's fighting the good fight. 

 

Sat, 06/07/2014 - 14:00 | 4832758 Kayman
Kayman's picture

But, but, but... you are deliberately evading the huge job creation the Clintons promoted... in China.

Sat, 06/07/2014 - 14:17 | 4832782 11b40
11b40's picture

You sound like the product of a marriage between Glenn Beck and Rush Limbo.

Forget the meds?

Sat, 06/07/2014 - 13:40 | 4832708 KnuckleDragger-X
KnuckleDragger-X's picture

They should have filed in east Texas, those people just love to screw big business...

Sat, 06/07/2014 - 15:58 | 4832978 11b40
11b40's picture

They have plenty of company.  Just look at how many of of us have been screwed by big business.

Sat, 06/07/2014 - 16:04 | 4832986 The Econ Ideal
The Econ Ideal's picture

Can I sue my broker for selling my order flow and front running my orders? /sarc

Sat, 06/07/2014 - 16:29 | 4833033 Joebloinvestor
Joebloinvestor's picture

I really want to hear how screwing everyone else leads to market stability and liquidity.

Be very leery of the ones who support it and the positions in the pecking order they hold.

Watch how many "regulators" switch sides.

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