Eliot Spitzer ended the New York Stock Exchange career of former CEO Dick Grasso by alleging fraud in connection with Grasso’s otherworldly $188 million pay package. Unlike most of Spitzer’s targets, Grasso had the money and balls to take him to court. Five years later, Grasso has won the latest in a string of legal victories, one that all but kills the original Spitzer lawsuit:
NYT: The New York State Court of Appeals on Wednesday upheld a lower court ruling dismissing four of six counts brought by the state attorney general against Mr. Grasso for his $187.5 million pay package.
From the start, the attorney general’s office had argued that Mr. Grasso’s pay was unreasonable and not properly disclosed under New York’s laws for a nonprofit corporation.
But the court said that state law did not give the attorney general the authority to bring major parts of the case, however unreasonable the compensation might seem.
Wednesday’s ruling will make it much more difficult for the state to try and recoup some of the money Mr. Grasso accumulated during his eight years at the helm of the Big Board.
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