IDX Capital Says it Wins $8.25 Million Over Failed Sale
IDX Capital LLC and two former principals were awarded $8.25 million by a Manhattan jury over the actions of a former colleague that doomed a $25 million buyout of the firm by Knight Capital Group Inc. (KCG) in 2006.
The inter-dealer broker and Jamie Cawley and Brady Halper was awarded damages following a December trial in New York state Supreme Court. A judge formally entered the judgment March 5.
The jury found that Wang knowingly interfered in the relationship between the two companies, causing the deal to fall apart. In their complaint, the plaintiffs originally claimed that Wang and others undertook a “coordinated campaign” to kill the deal, in part with anonymous “defamatory” e-mails.
John Noona, a lawyer for defendant Wesley Wang, a founder and former managing director of Phoenix Partners Group LP, said he will appeal. Cawley and Wang worked together previously at Axiom Global Partners LLC, a New York-based credit-default swap brokerage.
Cawley is now chief executive officer of Javelin Capital Markets LLC, a swaps-trading system that said it plans to register with the Commodity Futures Trading Commission as a so-called swaps-execution facility.
IDX, along with Halper and Cawley were awarded compensatory damages totaling $8 million by the jury on Dec. 21. On Jan. 7, the jury awarded punitive damages of more than $260,000.
The case is IDX Capital v. Wesley Wang, 102806-2007, New York State Supreme Court (Manhattan).
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