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Tim Quast
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We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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January 1, 2003

Grubman Faces Nasdaq Nemesis

By Staff Reports

A huge class action lawsuit has been filed against Salomon Smith Barney and Jack Grubman. This lawsuit, filed by the high-powered law firm Lovell Stewart Halebian, charges that Salomon and others caused the market price of XO Communications to be artifically inflated.

The Halebian firm, which has selected senior partner Christopher Lovell to argue the case in U.S. District Court in Manhattan, represents clients with at least $130 million in losses in a period between 1997 and 2001, according to the complaint.

The complaint also charges that Salomon lead telecommunications analyst, Jack Grubman, maintained a buy recommendation on XO Communications to ensure that his employer was able to obtain and support fat investment banking business. Lovell's presence in the lawsuit has attracted much interest. He was the lead attorney who recovered more than $1 billion in an anti-trust price-fixing lawsuit against Nasdaq.