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Gold fix banks will have to reveal correspondence for antitrust lawsuit

Section: Daily Dispatches

Scotia Will Have to Reveal Internal Correspondence in Gold Fixing Case, Lawyer for Plaintiffs Says

By Barbara Shecter
National Post, Toronto
Tuesday, October 11, 2016

Large global banks targeted in a lawsuit alleging price fixing in the gold market, including Canada's Bank of Nova Scotia, will have to turn over internal emails and other correspondence spanning several years as the case moves ahead, says Daniel Brockett, the New York lawyer who is spearheading the U.S. lawsuit.

"They have to produce all the relevant emails and chat-room instant messages, however they communicated with each other," Brockett said in an interview after Valerie Caproni, a judge in the U.S. District Court for the Southern District of New York, ruled this past week that a portion of the case can move forward.

... Dispatch continues below ...


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Company Announcement
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...For the remainder of the announcement:

Caproni reduced the class period to six years ending in 2012 and dismissed a claim of unjust enrichment, but Brockett said the "core" claims were maintained in the ruling that rejected the banks' motion to have the case dismissed.

"The ruling is a major victory for the plaintiffs because it upholds the core anti-trust claim against the five fixing banks and the statutory commodity manipulation claim against the five fixing banks," said Brockett, a senior litigation partner at Quinn Emanuel Urquhart & Sullivan LLP.

Investors behind the lawsuit allege Scotia, Barclays PLC, HSBC Holdings PLC, Societe Generale, and Deutsche Bank PLC conspired to manipulate the price of gold through twice-daily meetings where the small group of banks convened to set the spot price. None of the allegations have been proven.

The plaintiffs will now seek documents from the banks during a discovery period, which Brockett expects to last between 18 months and two years.

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