RBS and Société Générale Spared from NY FX Rigging Class Action

Investors tried to convince the New York judge to reinclude RBS and SocGen in the suit.

Some good news came out of the United States for the Royal Bank of Scotland PLC (RBS) and Société Générale SA this week, as a New York judge ruled that the banks won’t have to reface charges that they conspired to rig foreign currency exchange rates with other top banks.

Investors involved in a class action have accused top banks of participating in a scheme to rig the foreign exchange (forex) markets. Two months ago, RBS, SocGen, MUFG Bank Ltd., and UBS Group AG were removed from the suit due to lack of sufficient evidence.

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The investors involved in the suit asked for a reconsideration to reinclude RBS and Société Générale, however, on Monday US District Judge Lorna G. Schofield said that the investors didn’t provide any new evidence to suggest the court may have overlooked something, according to a report by Law360.

In addition, Judge Schofield stated that the investors didn’t provide the court with any evidence that the two banks targeted New York in the alleged conspiracy.

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“Because plaintiffs have failed to set forth any non-conclusory allegation linking SocGen or RBS’s conspiracy-related conduct to New York, they have not met their burden to show that SocGen and RBS” should face trial there, Judge Schofield ruled.

Previously, the judge had declined to clear the banks in two similar claims in 2016 and 2018, which accused RBS and SocGen from manipulating benchmark FX rates. The plaintiffs in the current proposed action class tried to convince Judge Schofield that she also had the personal jurisdiction in this case, as she did previously.

NY courts lack jurisdiction to include RBS and SocGen

However, on Monday, she stated that the court lacks the jurisdiction to consider the claims. The judge had left the claims against Barclays Bank PLC, BNP Paribas Group, HSBC Bank PLC, Standard Chartered Bank, and UBS AG intact.

On Tuesday, attorneys for the two banks and the investors involved in the class action did not immediately respond to media requests for comment.

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