Judge Allows Gruttadauria Investors To Sue Brokerage Houses
July 19, 2002 at 5:31 PM EST - Updated July 1 at 8:55 AM
CLEVELAND (AP) - A judge reached a verdict on Friday that was considered a victory for investors who said that they were cheated by broker Frank Gruttadauria.
A federal judge said that investors have the right to sue the brokerages that employed Gruttadauria (pictured, above) for hundreds of millions of dollars in damages.
The companies had asked the judge to block the lawsuits and force the plaintiffs into arbitration instead.
Robert Duvin, a lawyer for the investors, said that a jury trial is much more likely to result in punitive damages.
Gruttadauria is accused of cheating investors out of millions of dollars. Several investors have filed suit against Lehman Brothers and SG Cowen Securities, saying that the companies should have stopped Gruttadauria when he worked for them.
(Copyright 2002 by The Associated Press. All Rights Reserved.)