August 23, 2023
Goldman Sachs, Morgan Stanley, JPMorgan and UBS resolve long-running antitrust allegations from pension funds
Goldman Sachs, Morgan Stanley, JPMorgan Chase and UBS have agreed to pay almost $500mn to settle a long-running lawsuit alleging they violated antitrust laws by blocking efforts to modernise the opaque $2.7tn stock lending market.
In a settlement announced on Wednesday, the banks will pay $499mn to a class of investors led by several US pension funds from Iowa, Los Angeles, Orange County and Sonoma County.
EquiLend, an industry-owned platform for electronic securities lending and borrowing, was also part of the settlement. Credit Suisse agreed to pay $81mn in 2022 to settle the case. The action is ongoing against Bank of America, another defendant.
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“We’re very pleased to have partially settled this case and had such an impact on how EquiLend operates. We are looking forward to continuing to hold Bank of America accountable as the case progresses,” said Michael Eisenkraft, partner at Cohen Milstein Sellers & Toll,who represented the plaintiffs alongside Quinn Emanuel.
Read Banks Agree Near $500Mn Settlement in Stock-Lending Lawsuit. (Subscription required)