Barclays to face Libor lawsuit, appeals court rules

Barclays Canary Wharf

Barclays must face a lawsuit by investors who accused the U.K. bank of misleading them about its manipulation of the benchmark London interbank offered rate, a U.S. appeals court ruled.

Bloomberg News reports that a federal judge in Manhattan last year threw out the case, which was brought on behalf of holders of Barclays American depositary receipts who said the bank’s actions hurt their investment. The appeals court last week reversed part of that decision, reviving the lawsuit.

Global authorities have been investigating claims that more than a dozen banks altered submissions used to set benchmarks such as Libor to profit from bets on interest-rate derivatives or make the lenders’ finances appear healthier.

Barclays was fined $467m in 2012, the largest penalties ever imposed by regulators in the U.S. and U.K., after admitting it submitted false London and euro interbank offered rates. Part of that fine went to the Justice Department, which agreed not to prosecute the bank.

To access the complete Bloomberg article hit the link below:

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