Treasury auction manipulation class action lawsuits are expected, as claims emerge that major broker-dealers have engaged in anti-competitive practices in the multi-trillion dollar U.S. Treasury Bond market. These lawsuits follow federal government investigators into suspected Treasury market manipulation, which could result on criminal charges in addition to any civil claims brought against broker-dealers.
If you purchased U.S. Treasury Bonds from a party other than the United States Treasury in the years 2007 through 2012, contact Attorney Group today for more information. We provide free, confidential, no obligation consultations. We can help answer your questions, and if you choose to pursue a claim we can connect you with an affiliated attorney who can assist you throughout the legal process.
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Claim: Treasury Bond Manipulators Reaped Millions at the Expenses of Individuals
According to a lawsuit that has already been filed, the defendant broker-dealers abused their position as dealers of U.S. Treasuries by colluding to manipulate prices of U.S. Treasury Bonds at the expense of individual and smaller investors. Specifically, it is alleged that:
Defendants, by virtue of their position as primary dealers in the market for Treasury securities, have a special obligation to ensure the efficient function of this market. Instead, Defendants used their critical position to subvert the proper operation of the Treasury securities market by colluding to manipulate the Treasury Department auctions.
The lawsuit claims that individual investors lost millions of dollars as the result of the actions of the defendants—money that went to unlawfully profit the broker-dealers. It is also noted that a criminal investigation has been launched by the federal government against some of the broker-dealers as a result of their actions. Moreover, the lawsuit alleges that:
The investigation follows on the heels of [the Department of Justice’s] broader investigation into anticompetitive conduct in various financial product markets and benchmarks, including LIBOR, foreign exchange, and ISDAFIX, among others. Indeed, several Defendants, their parents, or affiliates have paid fines or pleaded guilty to criminal charges in these investigations.
Defendants names in the lawsuit, and against whom more Treasury auction manipulation class actions are expected, include:
- BANK OF NOVA SCOTIA, NEW YORK AGENCY
- BMO CAPITAL MARKETS CORP.
- BARCLAYS CAPITAL INC.
- CANTOR FITZGERALD & CO.
- CITIGROUP GLOBAL MARKETS INC.
- CREDIT SUISSE SECURITIES (USA) LLC
- DAIWA CAPITAL MARKETS AMERICA INC.
- DEUTSCHE BANK SECURITIES INC.
- GOLDMAN, SACHS & CO.
- HSBC SECURITIES (USA) INC.
- JEFFERIES LLC
- P. MORGAN SECURITIES LLC
- MERRILL LYNCH, PIERCE, FENNER & SMITH
- MIZUHO SECURITIES USA INC.
- MORGAN STANLEY & CO. LLC
- NOMURA SECURITIES INTERNATIONAL, INC.
- RBC CAPITAL MARKETS, LLC
- RBS SECURITIES INC.
- SG AMERICAS SECURITIES, LLC
- TD SECURITIES (USA) LLC; AND
- UBS SECURITIES LLC
Other entities who may have suffered harm as a resulted of Treasury auction manipulation include retirement and pension funds, institutional investors, and smaller brokers who deal in U.S. Treasury Bonds.
Affected Investors May be Entitled to Compensation
When the unlawful and anti-competitive conduct of one company causes injury or financial loss to another company or individual, those harmed may be able to seek compensation from the wrongdoers. Cases of this type are complex, and individuals who may have a claim are encouraged to speak to an experienced securities fraud attorney for more information on their rights and remedies.
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