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HSBC to pay $30 million to settle bond rigging lawsuit in U.S

Reuters  |  NEW YORK 

By Jonathan Stempel

(Reuters) - Holdings Plc has agreed to pay $30 million to settle litigation by investors who accused 11 big of rigging the roughly $9 trillion government agency bond market from 2009 to 2015.

The settlement with the British was made public late Wednesday night in the federal court in Manhattan, and requires approval by U.S.

is the third to settle, after Deutsche AG and agreed in August 2017 to pay a respective $48.5 million and $17 million and cooperate with the plaintiffs.

Investors led by two government entities and the Iron Workers Pension Plan of accused of colluding to manipulate prices of U.S. dollar-denominated supranational, sub-sovereign and agency bonds.

They said the used chatrooms and other means to share price data and coordinate trading, effectively functioning as a single "super-desk," to reduce competition and boost profit on "virtually every trade" at customers' expense.

"Rare is an antitrust case like this one, where a large volume of 'smoking gun' evidence exists at the pleading stage," they said in an amended complaint filed on Nov. 13.

denied liability, but settled to avoid more litigation that could prove "extraordinarily expensive and time-consuming," according to its settlement agreement.

It also agreed to cooperate with the plaintiffs, including by providing evidence such as electronic chats among the banks.

A spokesman, Rob Sherman, declined additional comment on Thursday.

The remaining defendants include Barclays Plc, BNP Paribas SA, Citigroup Inc, Credit Agricole SA, Credit Suisse Group AG, Nomura Holdings Inc, and

Ramos has yet to rule on their requests to dismiss the amended complaint.

He had dismissed an earlier version of the complaint last Aug. 24, but gave the investors another chance to prove their case.

The is home to a slew of private litigation accusing banks of conspiring to rig various financial markets, interest rate benchmarks and commodities.

The case is In re: SSA Bonds Antitrust Litigation, U.S. District Court, Southern District of New York, No. 16-03711.

(Reporting by Jonathan in New York; Editing by Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 20:49 IST