Home News Banks win dismissal of U.S. lawsuit alleging rigged Mexico bond sales

Banks win dismissal of U.S. lawsuit alleging rigged Mexico bond sales

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(Reuters) – A U.S. decide on Monday dismissed a proposed class motion lawsuit towards a number of giant banks for allegedly rigging the marketplace for Mexican authorities bonds, in keeping with a courtroom submitting.

JPMorgan Chase & Co, HSBC Holdings Plc, Citigroup Inc and Bank of America Corp are amongst 10 monetary firms that had been accused within the lawsuit of benefiting from manipulating the marketplace for Mexican authorities bonds.

U.S. District Judge Paul Oetken in Manhattan stated in his opinion he was dismissing the lawsuit as a result of the plaintiffs – eight pension funds – did not allege a direct hyperlink between every defendant and a conspiracy.

Oetken stated he by no means decided if there was a believable existence of an antitrust conspiracy, however stated the plaintiffs may attempt to amend their grievance.

Todd Seaver, a lawyer for the pension funds, stated his group was evaluating the ruling and had no additional remark.

The lawsuit adopted an investigation introduced by Mexico’s Federal Commission for Economic Competition, or Cofece, in April 2017, into attainable breaches of competitors legal guidelines within the public debt market.

Cofece described the probe as its largest investigation into public debt sales and mirrored the Mexican authorities’s efforts to extend market oversight.

In November, Mexico’s securities regulator in a separate probe fined prime banks, merchants and brokers for simulating bond trades to pump up volumes, in keeping with a authorities doc and supply.

Banks have in recent times confronted a spread of lawsuits in Manhattan federal courtroom by traders looking for billions of {dollars} over market-rigging allegations.

Reporting by Tom Hals in Wilmington, Delaware; Editing by Bill Berkrot


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