Liquidnet Faces Lawsuit from Wedbush Securities

Liquidnet Inc., a venue for institutions to anonymously trade public stocks, was sued by Wedbush Securities Inc. for allegedly stealing trade secrets to start a rival business trading shares of private companies, Reuters reported. The company announced earlier this week that it would move into trading private company stock, making it a competitor to private exchanges like SecondMarket. The Wedbush lawsuit comes three days after Liquidnet hired Lou Kerner, formerly a Wedbush vice president of equity research covering social media and e-commerce, to spearhead the new business, Reuters reported.

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