Kickbacks alleged at 13 brokeragesA class-action lawsuit...


September 29, 1994

Kickbacks alleged at 13 brokerages

A class-action lawsuit has been filed on behalf of investors alleging 13 retail securities brokerage firms got kickbacks from various market makers, law firm Robins, Kaplan, Miller & Ciresi said yesterday.

The alleged kickbacks were in exchange for sending orders from customers to the particular market directed by the market makers, the law firm said. In doing so, it said the brokerages allegedly failed to obtain for their customers the best price available for the securities.

Among the defendants in the lawsuit, filed in U.S. District Court in Boston, is Alex. Brown & Sons Inc. of Baltimore. A spokesman said yesterday that the company hadn't seen a copy of the lawsuit and could not comment.

2 at Bear Stearns split $30 million

Bear, Stearns & Co.' top two executives split almost $31 million in pay for the fiscal year that ended June 30, according to documents filed yesterday with the Securities and Exchange Commission.

That makes Bear Stearns Chairman Alan C. Greenberg and Chief Executive James E. Cayne two of the highest-paid executives on Wall Street. When base salaries and stock awards are taken into account, Mr. Greenberg earned $15.2 million, while Mr. Cayne made $15.6 million.

USF&G declares dividends

USF&G Corp.'s board yesterday declared a quarterly dividend of 5 cents a share on the Baltimore-based insurer's common stock. The board also declared the regular quarterly dividend of $1.025 a share on the corporation's Series A preferred stock.

In addition, regular quarterly dividends of $2.5625 a share and $1.25 a share were declared on the corporation's Series B and Series C preferred stock, respectively.

All dividends are payable Oct. 31, 1994, to stockholders of record as of Oct. 17.

Amtrak to reorganize, cut jobs

Amtrak, the nation's passenger railroad system, said yesterday that it was cutting 600 management jobs and reorganizing its operations to try to trim its projected budget deficit of $193 million.

Amtrak President Thomas Downs said the Washington-based organization was reforming into three business units designed to provide less costly and more competitive service to travelers.

Martin Marietta promotes Marsh

Martin Marietta Corp. said yesterday that it named Thomas Marsh, 51, president of its Manned Space Systems operations.

Mr. Marsh replaces Thomas Wirth, 59, who is retiring after 36 years with Martin. He was president of Manned Space Systems since 1992.

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