A PYMNTS Company

US: Forex trials narrowed, but not dismissed

By  |  September 21, 2016

US district judge Lorna Schofield, who is overseeing litigation accusing 16 banks of rigging prices in the $5.3 trillion-a-day foreign exchange market on Tuesday narrowed, but refused to dismiss lawsuits against Deutsche Bank , Morgan Stanley, and five other large banks that have yet to settle.

Judge Schofield dismissed antitrust claims in a class action brought by investors against the seven remaining banks arising out of some transactions executed outside the U.S., claims based on transactions conducted before Dec. 1, 2007, and claims under the Commodity Exchange Act for false reporting and based on transactions conducted on foreign exchanges.

Schofield wrote in a 56 page decision that the complaint “plausibly pleads both that artificial prices existed on FX exchanges,” causing investors to pay more, “and that this artificiality was caused by defendants’ actions.”

Full Content: Fortune

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.