Providence, R.I., is suing dozens of Wall Street banks and other financial companies over high-frequency trading.
The federal complaint was filed Friday in New York on behalf of city investment funds that traded stocks in the U.S. since April 18, 2009.
It claims that stock exchanges, investment banks and others defrauded the city, which managed funds on behalf of active and retired city employees, by manipulating market data in favor of split-second stock-trading firms.
The lawsuit comes amid heightened government scrutiny into whether advantages in computer hardware and placement enable some to get millisecond timing advances on trades.
The lawsuit asserts that the defendants routinely engaged in “manipulative, self-dealing and deceptive conduct,” including brokerage firms providing details of their clients’ offers on stocks to high-speed trading firms, which would then trade against them.
Airline’s bid to cut off retiree benefits rejected
DALLAS – A federal judge has rejected an attempt by American Airlines to quickly cut off benefits for many of its retirees.
American wants retirees who wish to keep their benefits to pay all the cost. Now the dispute could go to negotiations or a trial.
On Friday, U.S. Bankruptcy Court Judge Sean Lane in New York rejected a request made by American’s former parent, AMR Corp., for the right to immediately eliminate retiree benefits for former pilots, flight attendants and other union workers. Lane granted AMR’s request for a group of nonunion workers.
The company had 46,930 retirees when it filed for bankruptcy protection in 2011.
“American will review his ruling and consider next steps related to the retiree health and life insurance benefits,” American spokesman Casey Norton said in an emailed statement.
AMR emerged from Chapter 11 protection last December as American Airlines Group Inc. after merging with US Airways.
Tribute SUVs face recall for frame fix
DETROIT – Mazda is recalling 109,000 Tribute SUVs in cold-weather states to fix rusting frame parts.
The recall covers SUVs from the 2001 through 2004 model years. Mazda says in documents filed with U.S. safety regulators that the frame can rust and a wheel control arm can separate from it. That could result in a loss of steering control.
Dealers will install a reinforcement brace to fix the problem. Mazda says it will notify owners by letter when parts are available.
Chobani to expand beyond yogurt cups
NEW YORK – Chobani plans to expand beyond its Greek yogurt cups this summer as it faces intensifying competition in the fast-growing category.
Starting in July, the company plans to offer Chobani Oats, which is yogurt mixed with fruit and oats; a dessert called Chobani Indulgent; and new flavors for kids.
Later this year, the Norwich, N.Y.-based company will also introduce savory dips, Chief Marketing Officer Peter McGuinness said in a phone interview. Chobani has been testing such offerings at its cafe in New York City’s SoHo neighborhood.
The privately held company has grown quickly over the last several years, riding the surge in popularity of Greek yogurt, and is the biggest seller of Greek yogurt in the U.S. But competition has been increasing, with General Mills and Danone investing more heavily in their Greek yogurt brands.