Barclays, Royal Bank of Scotland, and three other banks are being sued by investors for at least £1 billion (US$1.2 billion) over rigging of the foreign exchange market in a test case for US-style class actions in the UK.
A US law firm that specialises in stock market litigation has filed the claim at the Competition Appeal Tribunal. The claim also targets US investment banks JP Morgan and Citigroup, and Switzerland’s UBS.
The legal action follows the European Commission’s decision in May to fine five banks more than €1 billion (US$1.2 billion) for colluding to reduce competition in markets for 11 currencies, including the US dollar, the euro, and the pound.
Cartels of traders with names such as the “Three-Way Banana Split” operated on chatrooms to rig the multi-trillion-dollar foreign exchange market. UBS, which informed the Commission about the collusion, was not fined but Japan’s MUFG received a penalty.