Grace Financial Group LLC, a Long Island, New York-based broker-dealer serving hedge funds and investment advisers, dropped a request for an injunction against a unit of Penson Worldwide Inc.
Grace Financial, based in Southampton, on May 31 filed a petition in New York state Supreme Court in Manhattan asking a judge to force Penson Financial Services Inc. to continue servicing trades under an agreement between the companies.
The petition was withdrawn without prejudice, according to a stipulation between the two sides dated June 4. Grace Financial dropped the case, said Mark G. Hanchet, an attorney with Mayer Brown LLP representing Penson Financial Services.
“They basically determined there was no point in going forward,” Hanchet said in a telephone interview.
Timothy P. Kebbe, an attorney representing Grace Financial, didn’t respond to a message seeking comment on the withdrawal of the petition, which had sought to stop Penson Financial Services from terminating the agreement or changing any services it provides. The company is a unit of Dallas-based Penson Worldwide.
Penson Financial had told Grace Financial on May 25 that it would stop settling and clearing trades and acting as a custodian for securities traded on local markets outside the U.S., according to the petition.
The case is Grace Financial Group LLC v. Penson Financial Services Inc., 651872/2012, New York state Supreme Court (Manhattan).