August 17, 2017

Three public pension funds claim in a federal class-action lawsuit filed Thursday that six major investment banks colluded to overcharge investors and maintain control of the $1.72 trillion stock loan market, according to a court document.

The suit was filed in U.S. District Court in New York by the $28.5 billion Iowa Public Employees' Retirement System, Des Moines; $14.2 billion Orange County Employees Retirement System, Santa Ana; and $2.5 billion Sonoma County Employees' Retirement Association, Santa Rosa, Calif.

The suit accuses Bank of America, Credit Suisse, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley (MS) and UBS of violating antitrust law by conspiring to overcharge investors and obstructing efforts to create competitive electronic exchanges, according to the documents.

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The law firms of Cohen Milstein Sellers & Toll and Quinn Emanuel Urquhart & Sullivan represent the pension funds.

The full article can be accessed here.