Author: David Schwartz J.D. CPA
On April 24, 2014, the Second Circuit overturned Southern District Judge Shira Schiendlin’s May 13, 2013 dismissal of a class action federal securities lawsuit against Barclays for the bank’s role in the LIBOR rate setting scandal. In doing so, the Second Circuit Court of Appeals has revived the putative class action claims against Barclays led by the Carpenters Pension Trust of St. Louis, St. Clair Shores Police & Fire Retirement System, and the Pampano Beach Police & Firefighters’ Retirement System. The complaint alleges that the defendants participating in an illegal scheme to manipulate the LIBOR rates, and that the defendants “made material misstatements to the Company’s shareholders about the Company’s purported compliance with their principles and operational risk management processes and repeatedly told shareholders that Barclays was a model corporate citizen even though at all relevant times it was flouting the law.”