Lowey Dannenberg Commences Action Alleging Manipulation of WTI Crude Oil Futures and Options Contracts

On May 26, 2011, Lowey Dannenberg filed a class action lawsuit on behalf of a proposed class of traders who transacted in New York Mercantile Exchange ("NYMEX") West Texas Intermediate ("WTI") crude oil futures and options contracts. Plaintiff alleges that, between January 1, 2008 and April 30, 2008, Defendants intentionally and unlawfully manipulated WTI crude oil futures and options contracts in violation of the Commodity Exchange Act. Specifically, Plaintiff alleges that Defendants used their dominant ownership of physical WTI at Cushing, Oklahoma, the delivery hub for NYMEX WTI futures contracts, to artificially manipulate both spot and futures WTI prices to their financial advantage. The case was filed in the Southern District of New York and is currently pending before Judge William H. Pauley. Plaintiff's complaint follows a civil complaint filed on May 24, 2011 by the U.S. Commodity Futures Trading Commission based on similar conduct.