Kirby McInerney LLP Files Lawsuit Alleging Five Banks Fixed Gold Benchmark
NEW YORK -- March 11, 2014
The law firm of Kirby McInerney LLP announces that it filed a class action
yesterday against 5 global banks on behalf of investors who held or transacted
in physical gold or gold derivatives that settled or were marked-to-market at
the London Fix, or held or transacted in COMEX gold futures or options
contracts between January 1, 2004 and the present.
The Complaint alleges that Bank of Nova Scotia, Barclays, Deutsche Bank, HSBC
and Société Générale conspired to manipulate the London gold benchmark price,
and therefore the price of gold and gold derivative contracts, through the
London Fix mechanism. These five banks are London Fix members whose twice
daily conference calls establish the benchmark price for gold. This price
largely influences worldwide gold prices. London Fix members reportedly trade
other gold-related instruments during the London Fix teleconference. This
permits the members critical foreknowledge, permitting them or their
affiliates to trade derivatives with advance knowledge that the price is
virtually certain to move in accordance with the fixing.
The Complaint specifically alleges manipulation of the London fix and provides
dates of anomalous gold price movements which coincided with the London Fix
conference calls. These examples are indicative of manipulation as prices near
the time of the call spiked and then retreated in the opposite direction as
soon as the price was “fixed.” The Complaint alleges that the five banks
agreed with one another to restrain trade through collusively manipulating
prices of gold and gold derivatives contracts to profit from the
manipulations, both individually and collectively, in violation of Commodity
Exchange Act and CFTC Rule 180.1(a) and Section 1 of the Sherman Act, 15
U.S.C. §1 et. seq.
The case is Peter DeNigris v. Bank of Nova Scotia, et al., No. 14 Civ. 1638
(S.D.N.Y.). For additional information, please contact David Kovel, Esq. by
email or by telephone at (212) 371-6600.
Kirby McInerney LLP is a New York-based specialist plaintiffs’ litigation firm
with expertise in antitrust, securities, commodities, health care, consumer,
and whistleblower litigation. Kirby McInerney LLP has recovered billions of
dollars for its clients on a class and individual litigation. Information
about the firm can be found at Kirby McInerney’s website:
Kirby McInerney LLP
David Kovel, Esq., 212-371-6600
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