Sidley secured a significant victory on behalf of the client TD Ameritrade and its former CEO, in litigation stemming from Michael Lewis’ best-selling book Flash Boys: A Wall Street Revolt. The book focused on the intersection between certain high frequency trading practices, a broker’s “duty of best execution” when routing customer orders for execution, and payment for order flow. The case was centered in the U.S. District Court for the District of Nebraska, and following initial dismissals of state law claims, the remaining focus was on claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and whether a class could be asserted in this context. Following a two-day evidentiary hearing, the magistrate judge recommended denial of class certification. While the district judge declined to adopt that recommendation and certified a nationwide class, the U.S. Court of Appeals for the Eighth Circuit granted our expedited request for leave to appeal. And following briefing and argument, the Eighth Circuit issued a precedential opinion on April 23, 2021, which reversed the district court’s class certification order, concluding, among other reasons, that “despite advances in technology, individual evidence and inquiry is still required to determine economic loss for each class member.” The team was led by Alex Kaplan, Robert Hochman, Eamon Joyce, Jon Muenz, and David Kanter.
Sidley Secures Significant Victory on Behalf of TD Ameritrade and Its Former CEO
April 26, 2021