US: Banks to face class action for market-rigging, but antitrust claims axed

A federal judge ruled last Friday that banks can face lawsuits over allegations they manipulated interest rate benchmarks, a decision that allows a class action against the lenders to proceed.

US District Judge George Daniels will allow the lawsuits to proceed. A class action has been filed against some of the world’s largest banks, including Barclays and Citigroup, spearheaded by Florida-based Jeffrey Laydon, who claims the alleged benchmark rate manipulation lead to losses on his futures contracts.

Despite the lawsuits the banks will face, Judge Daniels sided with the lenders and granted their motion to dismiss claims of federal antitrust violations. In his decision, reports say the judge found that Laydon’s lawsuit “does not allege facts that competition was harmed in anyway.”

According to reports, the class action argues the banks colluded to manipulate benchmarks including LIIBOR, the Yen-LIBOR and others.

Full Content: WHTC

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