A PYMNTS Company

US: Judge declines to dismiss mega credit swap price-fixing suit

 |  September 4, 2014

A federal judge on Thursday denied a motion to dismiss a lawsuit that accuses 12 banks of price-fixing and manipulating the credit default swaps market, though she did narrow the scope of the suit.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to reports, US District Judge Denise Cote dismissed some antitrust claims against the banks, though not all of them.

    Damages could reach into the tens of billions of dollars now that the suit is allowed to proceed, reports say.

    Defendants, which include Bank of America, Barclays, Goldman Sachs, JPMorgan Chase, Morgan Stanley and other major financial institutions, are accused of conspiring to restrain competition within the credit default swaps industry. Plaintiffs argue that the banks unfairly hiked transaction prices through the collusion.

    The suit was filed on behalf of investors of the swaps from January 1, 2008 to December 31, 2013.

    Full content: Reuters

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