This excerpt taken from the NDAQ 8-K filed Feb 20, 2008.
5. Carapico v. Frucher, et al
PennMont Securities, a shareholder of PHLX, filed suit on December 22, 2005 against five individuals: Meyer Frucher, PHLXs Chairman and Chief Executive Officer; William Briggs, PHLXs Executive Vice President; Norman Steisel, PHLXs Executive Vice President and Chief Operating Officer; and Kevin Foley and Christopher Nagy, former members of PHLXs Board of Governors. PHLX is advancing defense expenses to the Defendants in accordance with its Restated Certificate of Incorporation and By-Laws. The complaint alleges mismanagement from the mid 1990s forward and alleges direct and derivative claims under the Racketeer Influenced and Corrupt Organizations Act and nine common law causes of action. The complaint seeks monetary damages for plaintiffs and fellow shareholders. Defendants have filed a motion to dismiss the complaint on multiple grounds.