Two Banks Win Dismissal Of US Silver Price-Fixing Suit

On Monday, a judge in the US dismissed a lawsuit filed by investors alleging that HSBC Holdings and Bank of Nova Scotia colluded to manipulate silver prices.

US District Judge Valerie Caproni in Manhattan ruled that the investors did not have the legal authority to pursue antitrust claims under the Sherman Act or claims under the federal Commodity Exchange Act.

HSBC, Scotiabank, and Deutsche Bank AG were accused by investors of manipulating silver prices between 2007 and 2013. The investors claimed to have evidence of a price-fixing conspiracy among these banks and other silver market makers.

The litigation started in 2014 and Deutsche Bank reached a settlement of $38 million after two years.

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In a 24-page decision, Caproni determined that the investors were unable to prove their losses were a result of the banks’ alleged manipulation of the Fix, a benchmark price for silver bars and derivatives.

Caproni stated that the investors failed to provide evidence that distorted pricing had a plausible impact on their trades, and noted that the damages claimed were too speculative.

The judge stated that the investors were not effective in enforcing their private antitrust claims, in contrast to those who may have sold silver at a fixed price.