SUMIMIT, N.J.--(BUSINESS WIRE)--A letter from ETF Managers Group LLC & the legal team led by Sean Coffey of Kramer Levin Naftalis & Frankel LLP:
Although ETFMG has not yet been served with a complete copy of the complaint with exhibits, the lawsuit filed against us this week by NASDAQ is frivolous and based on a gross mischaracterization of the relationships and agreements at issue. Suffice it to say that the relationships between and among ETFMG, PureFunds, and ISE were mutually beneficial and profitable for all concerned. That changed when NASDAQ entered the picture as ISE’s successor in the relevant relationships, as will be made clear when we vigorously defend this baseless suit.
For whatever reason, NASDAQ determined not to honor its contractual obligations to ETFMG under the parties’ Wholesaling Agreement and otherwise behaved in a manner that undermined the cooperative and productive relationships that had previously existed among the parties. One consequence of those deteriorating relationships was an equally frivolous suit that PureFunds brought against ETFMG in New Jersey state court several months ago. NASDAQ’s suit appears to have been spurred by its unhappiness with facts being developed in that action reflecting poorly on its judgment and conduct towards both PureFunds and ETFMG.
As a preview of the vigorous defense ETFMG will pursue against this strike suit, we provide a letter that Mr. Masucci sent to NASDAQ on May 24, 2017 addressing many of the issues at the crux of this dispute found at: https://www.etfmg.com/assets/ETFMG-Press-Release.pdf . This letter reflects our attempt to engage constructively and solve problems that had derailed the parties’ historical cooperation. Tellingly, NASDAQ chose not to attach this letter to its complaint, though it included in the complaint a misleading and distorted summary of its contents. We are confident that when the facts are fully aired, ETFMG’s positions with respect to the parties’ mutual obligations will be vindicated.
ETFMG will be represented in this matter by the same team of lawyers from Kramer Levin Naftalis & Frankel LLP defending the frivolous New Jersey lawsuit, led by prominent trial lawyer Sean Coffey.