Arbitration Plea in Shopping.com Case Rejected
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NASD Regulation Inc., the enforcement arm of the National Assn. of Security Dealers, rejected a plea for arbitration against Waldron & Co. of Irvine and its clearing broker, Los Angeles-based Wedbush Morgan Securities, that alleged manipulation of Shopping.com shares.
Eagle Opportunities Fund, which filed the complaint, “does not have the standing” to bring an arbitration proceeding against Waldron and Wedbush because Eagle was not a customer of either firm, NASD Regulation ruled.
“I feel the decision is fair, and that Waldron will be vindicated of any accusations,” said Cery Perle, Waldron’s president.
Waldron took Shopping.com, a Corona del Mar Internet retailer, public last November, selling 1.3 million shares at $9 each. The stock jumped to $32.13 in March, then dropped amid charges by other brokerage firms that Waldron was keeping the price artificially high. As a result, regulators slapped a two-week halt on trading and launched an investigation into possible stock manipulation--charges that Waldron has denied. Shopping.com faces three class-action lawsuits that allege stock manipulation.
On April 30, Waldron resumed selling Shopping.com’s stock. It closed Wednesday at $24, up $5, in over-the-counter trading.
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