New York Court throws out attempt to block restructuring vote

Zeus Securities Inc. of Jerico, N.Y., and the Independent Broker-Dealer Association asked the court to issue a temporary restraining order to halt an NASD member vote on its restructuring. The judge denied the request and ordered both sides to appear before him on Monday. The NASD is proposing to demutualize, with a view to one day going public.

“This eleventh-hour delay tactic sought to use the court prohibit the membership from speaking and is counter to the democratic process. It would have been bad for not only the thousands of NASD members who have reviewed the plan and registered their vote, but for the US financial markets in general. Consequently, we will continue to take whatever steps are necessary to protect our thoughtful and responsible process,”Edward Knight, executive vice president and chief legal officer of the NASD said in a press release.