Grasso compensation trial will be in state court

The “excessive compensation” trial of former New York Stock Exchange chair Richard Grasso is headed back to state court. Grasso was sued in state court by the New York attorney general, on a claim that the NYSE violated the state’s not-for-profit corporation law by paying Grasso too much in a severenace package—$187.5 million, to be exact.

Grasso tried to remove the case to federal court, since the NYSE is a federally regulated institution, but District Judge Gerald Lynch held that the claim is for state law violations.