Barclay, Royal Bank of Scotland, JP Morgan, Citigroup, and other banks are facing a class-action suit in their role in fixing and manipulating the forex market.
The Case Against Barclay And the Other Banks
A case has been filed by a United States firm, at the Competition Appeal Tribunal against top banks in the United States, United Kingdom, and Switzerland. Some of these banks involved in this US Style class-action suit in the UK include Barclay, JP Morgan, Citigroup, and UBS. The suit against the banks is coming after the European Union decision in May to fine some top banks for forex manipulation involving top currencies like the US dollars, pounds, etc
The lawsuit was initiated in the UK after the success it recorded in the United States. The arrowhead of the UK litigation is Michael O’Higgins, a former chair of the Pensions Regulator. He is seeking justice for investors in the United Kingdom as well.
According to O’Higgins,
Just as compensation has been won in the US, our legal action in the UK will seek to return hundreds of millions of pounds to pension funds and another corporate who were targeted by the cartel.
Scot+Scott, a law firm in the United States had earlier successfully secured over 2.3 billion dollars in a class-action suit against banks like Barclays, RBS, UBS and Deutsche Bank. Such precedent will be looked into as they are expected to play out in the US Style class action in the United Kingdom.
The UK Law and Class Action
The law firms handling the class-action suit in the United Kingdom are very confident in their cases. They have sought to address all those affected by the manipulation of the forex currency by these banks.
There have been recorded success form class action involving tobacco companies, drug companies, and other companies. These cases have seen investors and consumers benefited, especially after the change in the law in 2015. The changes in the law saw investors and consumers secure billions of dollars as compensation in such a lawsuit.
Prior to these changes, it has been difficult for people to organize a class action against such big companies. It has also been so expensive that most of the complainants could not afford the process or abandon it after a while. However, these changes have made it difficult, which is another big boost for this class action in the United Kingdom.
Another aspect playing for the complainants is that the judge passed that all similar complaints should be included in the same claim. This will further reduce the cost, especially for those that do not have the financial power to follow up on such a huge case. It will also become easier to gather up all the relevant and necessary documentation of the process that will work in favor of the complainants.
These companies are renowned for manipulating their platforms to the detriment of their traders. Such class action is the only way that some of these investors can retrieve their investments and get justice.