New York says Barclays move to toss fraud case should be denied
The New York attorney general on Tuesday rebutted Barclays Plc’s (BARC.L) motion to dismiss the state’s lawsuit alleging fraud in how it ran a private trading platform, calling the arguments in the petition “misguided” and “disingenuous.”
New York Attorney General Eric Schneiderman again blasted Barclays for allegedly not protecting customers from “high-frequency” traders in its trading venue, despite repeated assurances to clients by the bank that it was doing so.
“We do not believe that this suit is justified, and we have a duty to our shareholders, clients and colleagues to defend our position,” said the spokesman, Mark Lane.
The attorney general also took issue with Barclays’ assertion that customers trading in its “dark pool” trading platform were never misled as they were sophisticated investors.
“Conduct that deceives even sophisticated investors is hardly excluded from oversight and enforcement,” Schneiderman said.
Nearly all trades were executed on its dark pool called LX when better prices might have been obtained if Barclays had sent trades to other stock exchanges or venues, the complaint said.
“Barclays’ false assurances are manifested in the theme set forth in its marketing material: ‘Protecting clients in the dark,'” the attorney general said.
Barclays has until Oct. 12 to respond, after which the case will go to trial if a settlement isn’t reached.
Source: Reuters
Related Posts
Exchanges, Barclays win dismissal of U.S. high-frequency trading case
New York attorney receives 5 years’ imprisonment for Ponzi scheme
Credit Suisse, Barclays in Talks to Settle ‘Dark Pool’ Allegations
Credit Suisse Reaches Tentative $85 Million Settlement on ‘Dark Pool’ Probe
Barclays Bank sued for mortgage securities fraud
