Barclays Bank PLC obtained a ruling enjoining a proposed investor class action in New Mexico alleging that Barclays and other major banks conspired to manipulate the auction process used to value bonds and settle credit default swaps.
U.S. District Judge Denise Cote of the Southern District of New York barred the New Mexico plaintiffs from pursuing their claims, holding that the banks could enforce a 2015 class settlement that resolved a separate, but similar CDS lawsuit in New York. The settlement included a release of claims that binds the New Mexico plaintiffs, the judge ruled.
“The New Mexico plaintiffs’ claims share an identical factual predicate with the Released Claims,” Judge Cote wrote in her opinion on January 26. “The New Mexico plaintiffs’ claims were also adequately represented in the New York Action.”
The S&C team representing Barclays included Jeff Scott, Matthew Porpora, Jonathan Carter and Alexandra Bodo.
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