Grasso case dismissed on all counts

Jul 1, 2008 @ 3:34 pm

By Aaron Siegel

Richard Grasso, the former chairman of the New York Stock Exchange, won a dismissal of a lawsuit contesting his $187.5 million pay package, according to published reports.

The New York Supreme Court Appellate Division threw out the remaining two parts of the case on grounds that former New York Attorney General Eliot L. Spitzer lost the authority to continue pressing the action when the NYSE became a for-profit company in 2006.

Last week, Mr. Grasso won another appeal when the New York State Supreme Court threw out four of the six claims against him.

The appeals court also ruled that the judge in the case, Charles Ramos, was wrong when in 2006 he ordered him to repay portions of his $112.2 million retirement package to the state in the absence of a trial.

New York Attorney General Andrew Cuomo may seek a review of today's ruling if he chooses to do so.

In 2004, Mr. Grasso was forced out of his job over his pay package. Mr. Spitzer then sued him on the basis that officers of not-for-profits must be paid "reasonable" amounts under New York state law.

The court today also threw out a claim against Kenneth Langone, co-founder of The Home Depot Inc. in Atlanta and former chairman of the NYSE’s compensation committee.

Mr. Spitzer accused him of breaching his duty to the NYSE by misleading the board on Mr. Grasso's pay.

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