US Treasury Auction Antitrust Litigation

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PENDING

US Treasury Auction Antitrust Litigation

SETTLEMENT FUND: TBD

FILING DEADLINE: TBD

CASE NUMBER:

15-md-2673 U.S. District Court for the Southern District of New York

CLASS PERIOD:

November 15, 2013 - Present

NON-SETTLING DEFENDANTS
Barclays, RBS, UBS, MS, Bank of America, BNP, CS, Citi, Goldman Sachs and JP Morgan Chase

BOYCOTT DEFENDANTS

BOYCOTT DEFENDANTS:

Goldman Sachs, JP Morgan Chase, Barclays, Citi, Bank of America, MS and CS

PLATFORM DEFENDANTS:

Tradeweb and Dealerweb

ELIGIBLE CLASS
ELIGIBLE AUCTION CLASS:
All persons or entities who during the period from January 1, 2007 through June 8, 2015: (1) purchased Treasuries in an auction; (2) transacted in Treasuries, when issued securities, or Treasury options with an Auction Defendant (or any affiliate thereof); or (3) transacted in Treasury futures or exchange-traded Treasury options.

BOYCOTT CLASS:
All persons or entities who, from November 15, 2013 to the present, transacted in Treasury Securities in the secondary Treasury market with a Boycott Defendant (or any affiliate thereof).
PROPOSED INSTRUMENTS
U.S. Treasury bills, notes, bonds and other securities.
Preliminary Allegations
The complaint alleges that the Auction Defendants used their inside knowledge and coordinated bidding strategies to bid lower prices/higher yields in low demand auctions and higher prices/lower yields in high demand auctions.

In low demand auctions, this resulted in the auction price being set lower than it otherwise would have been, to the detriment of the U.S. Treasury. However, the Auction Defendants capitalized on their collusive trading strategies leading up to the auction, causing harm to members of the Auction Class.

In high demand auctions, the conspiracy resulted in all of the auction participants paying a too-high price for the allocated Treasuries. In addition, the conspiracy reduced the supply of Treasuries available at the auction to non-conspirators. Those who wished to obtain the Treasuriesincluding but not limited to those who were directly crowded outwere forced to purchase in the secondary market, making prices there artificially high too.

The Boycott and Platform defendants entered into and engaged in a horizontal contracts, combination, or conspiracy in restraint of trade to resist competition in secondary market.

Boycott Class members damages are directly attributable to the Boycott Defendants and Platform Defendants conduct, which resulted in all Boycott Class members paying artificially inflated bid/offer spreads on every Treasury security they purchased or sold in the secondary market during the Boycott Class Period.
Case Summary
Class action relating to two interrelated conspiracies in the U.S. Treasury market.

Colluding in Treasury Auctions and conspiracy to manipulate Treasury auction prices.

Auction Class

All persons or entities who during the period from January 1, 2007 through June 8, 2015: (1) purchased Treasuries in an auction; (2) transacted in Treasuries, when-issued securities, or Treasury options with an Auction Defendant (or any affiliate thereof); or (3) transacted in Treasury futures or exchange-traded Treasury options.

Boycott Class

With respect to Boycott and Platform Defendants conspiracy to engage in group boycotts :
All persons or entities who, from November 15, 2013 to the present, transacted in Treasury Securities in the secondary Treasury market with a Boycott Defendant (or any affiliate thereof).