British bank Barclays was back in court today as it sought to strike out part of the lawsuit against it by a group of investors over allegations of fraud made in the US.
The claimants, who are all investors from Allianz Global Investors and others, have acquired, continued to hold or disposed of ordinary shares in Barclays Bank, which is listed on the London Stock Exchange.
Their case case stems from an RNS article which was issued by the bank on 26 June 2014 stating that the Attorney General of the State of New York had filed a complaint in the New York State Courts relating to his investigation of “LX Liquidity Cross” which was the bank’s alternative trading system.
Two years later, on 31 January 2016 the bank and Barclays Capital Inc, one of its subsidiaries, entered into a settlement agreement with the Attorney General of New York and submitted to an order made by the Securities and Exchange Commission (SEC).
The SEC charged Barclays along with Credit Suisse with “dark pool” violations.
Barclays was fined $70m, comprising $35m paid to the SEC and $35m to the New York Attorney General.
The group of institutional investors enlisted law firm Signature to file a claim against the bank back in 2020, which was lodged with the Financial List of the High Court as a group action.
The claimants are seeking damages in respect of the fall in share price as they alleged the bank has misconduct in relation to its “dark pool” trading.
The parties have already been to court last year with applications to amend claim forms and particulars of claims, which was handled by Mr Justice Leech.
But now the parties were back in court today, in front of the same judge, as it understood that Barclays has applied to strike out part of the case over novel legal issues relating to reliance and the wider statutory scheme.
This action forms part of the continued rise in securities litigation in the English High Court, with this case may clarify significant uncertainties as to the scope of banks’ liabilities under Financial Services and Markets Act 2000.
The legal parties are barristers Alex Barden (Fountain Court) and Carola Binney (4NS) led by Jonathan Nash KC (3VB), instructed by Becca Hogan from Signature Litigation for the investors. While Barclays has Helen Davies KC (Brick Court Chambers), Michael Watkins and Tom Foxton (One Essex Court) instructed by Olly Middleton (Latham & Watkins).
Barclays declined to comment.