Banks must face U.S. silver rigging lawsuit; UBS is dismissed
Silver investors may pursue a lawsuit accusing two major banks of conspiring to fix prices and exploit market distortions, affecting $30 billion traded each year in the precious metal and related instruments, a federal judge has ruled.
U.S. District Judge Valerie Caproni in Manhattan rejected efforts by Bank of Nova Scotia ("ScotiaBank") and HSBC Holdings Plc to dismiss the lawsuit, in a decision made public on Tuesday.
Caproni also dismissed UBS Group AG as a defendant, saying there was nothing to show it manipulated prices.
Deutsche Bank AG settled related claims in April, and the investors plan soon to seek preliminary approval of a settlement, their lawyer Vincent Briganti, a partner at Lowey Dannenberg Cohen & Hart, said on Wednesday. Terms have not been disclosed.
ScotiaBank spokesman Rick Roth and Deutsche Bank spokeswoman Amanda Williams declined to comment. HSBC had no immediate comment. UBS spokeswoman Erica Chase said the Swiss bank is pleased the court accepted its arguments.
Caproni also ruled in a separate decision that another group of investors may pursue gold-rigging claims against ScotiaBank, HSBC, Barclays Plc and Societe Generale.