Key facts
- LSEG faces a $175 million fraud lawsuit from MayStreet founder Patrick Flannery.
- A US judge denied LSEG's motion to dismiss the lawsuit.
- Flannery alleges LSEG based the 2022 acquisition on promises it did not intend to keep.
The London Stock Exchange Group (LSEG) will proceed to face a $175 million fraud lawsuit filed by Patrick Flannery, the founder of analytics firm MayStreet Inc. A US judge has denied LSEG's request to dismiss the case. Flannery alleges that LSEG defrauded MayStreet's leadership into accepting a deferred-payments deal structure during the 2022 acquisition. The lawsuit claims LSEG based the transaction on promises it did not intend to keep, knowing that post-deal payments were tied to milestones the business could not achieve. LSEG had previously argued that the allegations did not amount to actionable fraud.