TD Ameritrade Lawsuit _ GREEN v. AMERITRADE INC _ Lagging Real Time Quotes
Mitchell Green subscribed to Ameritrade’s real-time quote service in February 1998. In March 2000, Green sued Ameritrade in the Douglas County, Nebraska, district court. Green sought to bring the suit as a class action on behalf of “[a]ll persons classified as Nonprofessional subscribers who have paid $20 per month for real time ‘last sales information’ with defendants Ameritrade, Inc. and Ameritrade Holding Corp. to obtain last sales information or real time market quotes for stocks or options.” Class Action Petition ¶ 3.3 Green alleged in his complaint that Ameritrade did “not provide its real time quote subscribers with actual real time, last sales information with respect to ‘option’ quotes.” Class Action Petition ¶ 12. Green asserted that the actual quotes provided lagged “up to hours behind the actual last sale of a particular option on any and all exchanges.” Id. He further alleged that Ameritrade led subscribers to believe that the option quotes were obtained from all option exchanges and market makers, though in fact they were not so obtained. Finally, and significantly, Green’s complaint alleged that real-time quote service subscribers “are making investment decisions to purchase or sell options based upon stale last sale information.” Id. Upon these facts, Green brought state-law claims for breach of contract, fraud by intentional misrepresentation, fraud by negligent representation, deceptive trade practices, and violation of the Nebraska Consumer Protection Act.