NYSE moves to dismiss suit

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Tuesday, Aug. 10, 2004 | 9:07 a.m.

NEW YORK -- The New York Stock Exchange has moved to dismiss a $50 million countersuit filed by former chief Richard A. Grasso, claiming that the U.S. District Court in which Grasso sued does not have jurisdiction in the case.

The filing, made late Monday, does not address whether Grasso's countersuit has merit, instead focusing on the fact that Grasso moved the case to federal court in June. The exchange's lawyers instead bolstered New York Attorney General Eliot Spitzer's claim that the case should be returned to state court.

Spitzer sued Grasso and former NYSE board member Kenneth G. Langone on May 24 in state court, seeking more than $100 million from Grasso and $18 million from Langone. Spitzer claimed the two hid information from the board's compensation committee in approving Grasso's $187.5 million pay package.