Grasso Rules Out Settlement

Richard Grasso dismissed the idea of settling the lawsuit that seeks to recover most of the $190 million he received as chairman and chief executive of the New York Stock Exchange, saying his reputation was at stake.

“In any litigation, settlement is an expediency, but in litigation where your good name is involved, you never pursue a settlement,” Grasso said in an interview Thursday.

Grasso said the suit, filed on behalf of the NYSE by New York Atty. Gen. Eliot Spitzer, had prevented him from reentering the workforce. Spitzer sued Grasso in May 2004, eight months after he was ousted as chairman of the NYSE. He claimed that Grasso’s pay was excessive under laws governing nonprofit organizations.

For the last two years, lawyers in the suit have gathered more than 1 million pages of documents from the NYSE and obtained testimony from 60 executives and former directors, including Henry Paulson, now U.S. Treasury secretary.

A trial, which will be decided by New York State Supreme Court Justice Charles Ramos, is scheduled for Oct. 16. Grasso appealed Ramos’ decision to proceed without a jury.