New York Attorney General Eliot Spitzer Monday sued to annul the egregious $187.5 million pay deal awarded to former New York Stock Exchange Chairman and CEO Richard Grasso that ignited a scandal which ultimately led to his ouster last year.

Spitzer has the authority to bring legal action against Grasso and the former NYSE board under the New York State Not-for-Profit Corporation Law. In a related move, Spitzer announced a settlement with Grasso’s deputy Frank Ashen, who admitted to providing "inaccurate and misleading" information to the board of directors when it was determining Grasso’s compensation.

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