E*Trade pays $23 million to settle Fiserv lawsuit
13 May 2003 | 4082 views | 0
Online brokerage E*Trade has paid $23 million to settle a Fiserv lawsuit over stock in GenesisIntermedia, the failed telemarketing firm controlled by Saudi arms dealer Adnan Khashoggi.
The suit relates to shares in GenesisIntermedia loaned to E*Trade by Fiserv, Nomura Securities, and Wedbush Morgan Securities and borrowed from MJK Clearing. With MJK unable to meets its obligations when GenesisIntermedia went belly up, the clearer sought Chapter 11 bankruptcy protection, sparking disputes over ownership of the shares.
Lawsuits brought by E*Trade's counterparties to the transaction total some $60 million.
Despite agreeing a settlement with Fiserv, E*Trade says it continues to "vigorously defend and pursue its remedies in the Wedbush and Nomura matters".