Berger & Montague has been appointed interim co-lead class
counsel (along with Quinn Emanuel Urquhart & Sullivan, LLP) to
represent a proposed class of traders of gold-based derivatives
contracts, physical gold, and gold-based securities that were
priced based on the London Gold Fix.
Twice daily in London, the members of the London Gold Market
Fixing (The Bank of Nova Scotia, Barclays Bank plc, Deutsche Bank
AG, HSBC Bank plc and Société Générale, collectively, "the
defendants") meet via conference call to set the benchmark rate for
the price of gold (the "London Gold Fixing"). The outcome of
the London Gold Fixing affects trillions of dollars worth of gold
and gold-based derivatives and securities.
Since March of 2014, more than 25 class actions have been filed
by dozens of law firms accusing the defendants of manipulating the
London Gold Fixing in violation of the Sherman Act and the
Commodity Exchange Act. These class actions further alleged
that traders of gold-based derivatives contracts, physical gold,
and gold-based securities were injured because of defendants'
manipulation of the London Gold Fixing. Almost all of the
class actions are pending in the United States District Court for
the Southern District of New York before the Honorable Valerie
Various government financial authorities in the United States
and abroad are also currently investigating the London Gold Fixing
process. On May 23, 2014, the United Kingdom Financial
Conduct Authority fined Barclays Bank plc £26,033,500 for failings
surrounding the London Gold Fixing and banned and fined a former
Barclays trader for inappropriate conduct at the London Gold
On May 6, 2014, recognizing the magnitude of this litigation,
Judge Caproni invited applications for appointment as interim class
counsel. On July 22, 2014, following two rounds of briefing,
Judge Caproni issued her decision appointing Berger & Montague
and Quinn Emanuel interim co-lead class counsel. In making
her selection from many well qualified applicants, Judge Caproni
noted that Berger & Montague and Quinn Emanuel are "best able
to represent the putative class."
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