Motion To Dismiss Denied In FX Rigging Case

A federal judge in New York on Wednesday allowed a consolidated class action by U.S.-based investors concerning the rigging of the foreign exchange (FX) market to move forward. In denying a motion to dismiss, U.S. District Judge Lorna G. Schofield ruled that the allegations in the complaint were sufficient to warrant discovery and, possibly, trial.

In her decision, Judge Schofield described the allegations as involving "a long-running conspiracy among the world's largest banks to manipulate the benchmark rates in one of the world's largest markets."  Plaintiffs are investors (including a municipal board,  investment funds, pension plans and hedge funds) who claim their returns were diminished as a result of manipulation by various  banks. They allege that certain employees at the banks primarily conspired in chat rooms with names like "The Cartel," "The Bandits' Club," "The  Mafia," and "One Team, One Dream." There, the complaint maintains, certain FX traders shared