Deutsche Bank settles US silver price-fixing lawsuit
Apr 14, 2016 04:45 AM EDT
On Wednesday, lawyers for traders said in a court filing that Deutsche Bank has agreed to settle a US lawsuit over allegations that it conspired with HSBC Holdings and Bank of Nova Scotia to illegally manipulate silver futures prices.
According to Bloomberg, lawyers for traders in a private lawsuit said in a letter in a federal court in Manhattan that the bank signed a binding "term sheet" and is negotiating the final details of the accord. Deutsche Bank also agreed to assist the plaintiffs to pursue similar claims against other banking companies as part of the settlement. Attorneys Robert Eisler and Vincent Briganti said in the letter filed that the German financial firm also vowed to provide instant messages and other communications.
In 2014, silver futures traders filed a lawsuit against a group of banks like Deutsche Bank, Bank of Nova Scotia, and HSBC Holdings alleging that they unlawfully fixed the price of the metal and its derivatives. The defendants distorted prices on about $30 billion of silver and silver financial instruments traded annually, says TF Metal Report. The lawsuit echoes similar claims brought previously against financial firms over alleged illegal fixing of gold prices.
Reuters reported that although the accord will include a monetary payment by Deutsche Bank, the terms were not disclosed. German Bank has already signed the settlement term and is currently negotiating a formal settlement deal, which will be passed for approval by US Judge Valerie Caproni, who oversees the case.
A spokeswoman for Deutsche Bank declined to comment and lawyers for the investors did not immediately respond to request for comment. Meanwhile, spokesmen for Nova Scotia and HSBC refused to comment, saying they could not discuss pending litigation.
The federal court in Manhattan faces dozens of similar lawsuits, which investors accuse banks of conspiring to distort rates or prices in commodities and financial markets.