NEW YORK, Oct 20 (Reuters) – A U.S. jury found on Thursday that Credit Suisse Group AG ( CSGN.S ) did not conspire with the world’s biggest banks to rig prices in the foreign exchange market between 2007 and 2013, giving the bank its victory as it works to restructure and put a series of scandals behind it.

The case stems from the forex rigging scandal, which led to international regulatory probes that led to more than $10 billion in fines for several banks.

A Credit Suisse spokesman said the bank was “delighted that the jury agreed with us that the plaintiffs’ case had no merit”.

Credit Suisse was the last remaining bank defendant in the class action brought by currency investors in 2013, after 15 others reached settlements worth $2.31 billion. The investors alleged that Credit Suisse traders shared non-public pricing information with traders at other banks.

During the trial in Manhattan federal court that began on October 11, jurors heard evidence that five banks pleaded guilty in 2015 to a forex-related antitrust conspiracy, and saw transcripts from chat rooms with names like “The Cartel” where said investors traders. colluded.

The jury began deliberations on Wednesday and worked for about seven hours to reach their verdict. They found that investors proved there was a conspiracy to rig prices in the forex market, but that Credit Suisse was not involved.

A lawyer for the investors argued during the trial that the conversation transcripts were damning evidence of a conspiracy among the banks to rig the foreign currency market. Credit Suisse traders participated in more than 100 chat rooms and shared information about the spread between the buy and sell price of currencies every other day, he said.

Credit Suisse attorneys argued that such rare communications could not have influenced the market, that traders chatting about different currency pairs could not have been part of the same conspiracy, and that there was no evidence that Credit Suisse traders acted never on the conversations.

Credit Suisse settled in July with several investors, including BlackRock Inc and Pimco Allianz SE, who chose to “opt out” of the class action litigation. Investors usually do this when they hope to recover more by suing on their own. Terms of the settlement were not disclosed.

The verdict came as the Swiss bank worked to complete an overhaul that would likely see it shrink a volatile investment bank in London and New York to focus on banking for the wealthy in Switzerland.

The case is Foreign Exchange Benchmark Rates In Re Antitrust Litigation, US District Court, Southern District of New York, No. 13-07789.

Reporting by Jody Godoy in New York; Editing by Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles.

Jody Godoy

Thomson Reuters

Jody Godoy reports on banking and securities law. Contact her at

Source link