The Financial Post reports in its Friday edition that a federal judge in Manhattan on Thursday dismissed a lawsuit by investors that accused nine banks, including Canada's Big Six, of conspiring to manipulate a Canadian rate benchmark to improve profits from derivatives trading.
A Reuters dispatch to the Post says that U.S. District Judge Analisa Torres rejected racketeering and antitrust claims by the lead plaintiff, the Fire & Police Pension Association of Colorado, against Royal Bank of Canada, TD Bank, Bank of Nova Scotia and others.
The proposed class action concerned the alleged suppression from August, 2007, to June, 2014, of the Canadian Dealer Offered Rate (CDOR), a rate at which banks would lend to corporate clients.
The plaintiff accused banks of manipulating CDOR to reduce interest owed to investors in the U.S., but the judge said that the alleged wrongful conduct occurred in Canada, which is not covered by the U.S. anti-racketeering law, and the plaintiff failed to show any alleged rigging left it worse off.
Other defendants included Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Bank of America, Deutsche Bank AG and HSBC Holdings PLC.
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