FX collusion scandal reaches Australia, class action launched
Byron Kaye, 27 May 2015
An Australian law firm filed a class action lawsuit on Monday against five major international investment banks accusing them of colluding to rig foreign exchange rates during 2008-2013 to jack up profits at the expense of businesses and investors.
The case involved some of the same banks caught up in similar currency market scandals in Europe and the United States.
UBS AG, Barclays Bank Plc, Citigroup Inc, Royal Bank of Scotland Group Plc and JP Morgan AG are accused, according to Australian court documents, of colluding to increase the price clients paid for certain investment products in order to fix exchange rates at more costly levels.
Reuters emailed and called the banks named in the lawsuit.
JP Morgan declined to comment, while spokespeople for UBS, Citi and RBS acknowledged receiving Reuters’ enquiries but were not immediately available for comment.
Maurice Blackburn, the law firm that has launched the case, alleged that traders from the banks, who were supposed to be competing with each other, shared confidential information like details of clients and their orders on internet chatrooms.
