New York Attorney General Eric Schneiderman’s lawsuit accusing Barclays of bilking customers to expand its dark pool was scrutinized by a judge for not naming specific victims of the alleged fraud.
Bloomberg News reports that New York State Supreme Court Justice Shirley Werner Kornreich asked a Schneiderman deputy at a hearing Thursday in Manhattan about a parallel lawsuit by investors in federal court over similar allegations.
The judge said she found the state’s suit hard to follow, adding that the complaint cited trade journals and newspapers as evidence of the bank’s misleading statements and not alleged victims.
“It’s hard for me to believe that a very sophisticated investor would base his choice of investment platform on a newspaper article,” Kornreich said.
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