BGC loses numbers game in US court battle with Tullett
Friday 23 March 2012
Brokers are known for making overblown claims about almost anything, but a court hearing settling a dispute between bitter rivals BGC and Terry Smith's Tullett Prebon yesterday shows just how far they are prepared to go.
Tullett had admitted in the New York American Arbitration Court that some of its brokers had used data supplied by BGC after a licensing deal between the two firms had come to an end.
BGC's offshoot, Cantor, told the court it had suffered damages in the "hundreds of millions of dollars". The arbitrator did not agree. In fact, far from awarding BGC millions of dollars in compensation, the arbitrator made Tullett pay $789,998 (£500,000).
That was much less than even Mr Smith had been expecting to pay, having set aside £12.4m in its recent results to cover this and two other legal actions.
In the court documents it is revealed that when BGC began the legal action it claimed the data it had provided to Tullett was worth $4,500 per broker using it per day. Later it changed this to $500 a day.
At the arbitration hearing, one of the witnesses was asked: "How did you come up with the $500 figure?" and replied: "Well, pretty much out of thin air, to be honest."
In fact, the arbitrator found, the data had been previously charged at between $9.50 and $15.50 per broker per day. The court said there was no justification for Cantor to claim damages which were 30-50 times the actual probable loss.
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Glasgow 'riots': 'Dishonest' social media users accused of fuelling panic with pictures from London riots
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...