On Thursday, a U.S. judge dismissed a lawsuit against 16 large banks by retail foreign currency investors who alleged that they were indirectly harmed by a conspiracy to rig the prices.
Judge Lorna Schofield, the U.S. District in Manhattan said that the investors failed to disclose that they had legal standing to pursue the antitrust claims, or that the alleged conspiracy of the banks in the $5.1-trillion-a-day currency market was the proximate reason of their losses.
The plaintiffs said that they were injured by having purchased currencies from dealers that did not rig the prices, but which passed on the costs of the said conspiracy. They said that the conspiracy included the alleged use of chat rooms of defendants with such names as “The Mafia” and “The Cartel.”
A lawyer for the plaintiffs did not immediately issue a response to a request for comment.
Court papers reveal that 15 of the 16 banks have settled similar litigation by other investors amounting to $2.31 billion, with Credit Suisse Group AG serving as the holdout.
Barclays Plc , Citigroup Inc, Goldman Sachs Group Inc, Bank of America Corp, JPMorgan Chase & Co, Royal Bank of Canada, and Royal Bank of Scotland Group Plc are some of the settling banks. All were the defendants in the lawsuit that were dismissed by Schofield.