WILMINGTON, Del. — The battle for control of Cantor Fitzgerald L. P., a major dealer in the Nasdaq stock market, ended Tuesday in an out-of-court settlement that will see control going to Chief Executive Howard Lutnick.
"This settlement agreement makes sense for everyone," said Iris Cantor, who sued in March to stop Lutnick--her husband's protege--from taking over the company, a privately held partnership and the largest market-maker of U.S. Treasury securities between Wall Street firms that was once based in Southern California. The firm is now based in New York.
Her husband, B. Gerald Cantor, 79, had stepped down in December because of declining health.
Under the agreement, the Cantors' 55% family stake eventually will be bought out by the 170 limited partners for an undisclosed amount and Lutnick will have sole responsibility for managing the company.
Iris Cantor had claimed in her lawsuit that Lutnick's succession was premature and would interfere with the family's rights in the company.
The settlement was announced at the beginning of the second day of a scheduled two-week trial. Lutnick's lawyer said the judge has agreed to dismiss the case.
Under the deal, Cantor was named chairman emeritus of Cantor Fitzgerald L. P. for life. Iris Cantor was appointed vice chairman, and the company will fund the Iris and B. Gerald Cantor Foundation, a charitable foundation.
Cantor Fitzgerald transacts more than $20 trillion in financial securities annually and employs 2,000 people in offices throughout the United States, Europe and Asia.