Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barclays bosses face second lawsuit over dark pools

Barclays bosses face second lawsuit over dark pools

A US investor is suing Barclays as well as its current and former bosses over losses suffered in relation to its dark pool.

This follows New York Attorney General Eric Scheiderman's decision to launch a lawsuit concerning Barclays' dark pool in June.

Barbara Strougo, who is based in New York, filed a class action lawsuit in New York on Monday against Barclays, its chief executive Antony Jenkins (pictured) and finance director Tushar Morzaria, according to Reuters. The lawsuit also names former chief Bob Diamond and ex-finance chief Chris Lucas as defendants.

Strougo claimed she and other buyers of Barclays American depositary shares (ADS) lost money after Scheiderman brought a lawsuit against Barclays' dark pool trading on 25 June. The news caused Barclays' share price to fall more than 5% the following day, while the ADS fell 7.4%.

Dark pools allow institutional investors to trade large blocks of shares anonymously, making trading data available afterwards so that investors with large orders are not disadvantaged. 

The lawsuit alleges Barclays made false and/or misleading statements and did not disclose material adverse facts regarding its operations in its dark pool. It also claims the bank misled its institutional clients and gave high speed traders an unfair advantage to increase their trading activity and revenues.

The claimant said they have suffered significant losses and damages due to the 'defendants' wrongful acts and omissions' and share price fall, Reuters reported.

Barclays filed a motion last week to dismiss the attorney general's claims, which they bank said had 'fatal flaws' because Barclays' customers were never misled and marketing material information had been taken out of context.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter