Thomson Reuters Corp. lost a bid to have a judge throw out a lawsuit by a former employee who claims he was fired for telling the FBI that the company’s “tiered release” of a consumer survey violated insider-trading laws.
U.S. District Judge Shira Scheindlin in Manhattan today declined to dismiss the case, which was filed in April. The former employee, Mark Rosenblum, claims he was fired in retaliation for telling U.S. authorities that the company gave some customers an advantage by releasing the Thomson Reuters University of Michigan Surveys of Consumers to them first.
Thomson Reuters released the data to high-frequency traders two seconds before other subscribers, according to Rosenblum’s complaint. The public received the data five minutes after subscribers, he said. The arrangement gave an illegal advantage to the traders who got the data first, according to Rosenblum.
Thomson Reuters in July suspended its early release of the survey data as part of an agreement with New York Attorney General Eric Schneiderman, who was investigating the matter.
Thomson Reuters said it was disappointed with today’s court decision and called Rosenblum’s claims “baseless.”
“The company has policies in place to ensure that all terminations are handled fairly,” Thomson Reuters said in an e-mailed statement. “We look forward to presenting the facts relating to the plaintiff’s claims as this litigation unfolds.”
Bloomberg LP, the parent company of Bloomberg News, competes with Thomson Reuters in providing financial news and information.
The case is Rosenblum v. Thomson Reuters (Markets) LLC, 13-cv-02219, U.S. District Court, Southern District of New York (Manhattan).