A federal magistrate judge has called for the partial certification of a proposed class of investors who accused major banks including JPMorgan and Goldman Sachs of colluding to kill competition in the stock loan market, saying that the class meets all the necessary requirements, but the class period should not be expanded.
U.S. Magistrate Judge Sarah L. Cave issued a report and recommendation on Thursday after the case was referred to her by U.S. District Judge Katherine Polk Failla. The suit names several major banks as defendants, including Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and JPMorgan Chase Bank NA.
In her report, she recommended the appointment of Quinn Emanuel Urquhart & Sullivan and Cohen Milstein Sellers & Toll PLLC as class counsel and the Iowa Public Employees' Retirement System, Orange County Employees Retirement System, Sonoma County Employees' Retirement Association, Los Angeles County Employees Retirement Association and Torus Capital LLC as lead plaintiffs.
According to the report, the investors requested certification of a class of individuals who, directly or through an agent, entered into at least 100 U.S. stock loan transactions as a borrower from the prime brokerage businesses of the U.S.-based entities of the prime broker defendants or at least 100 U.S. stock loan transactions as a lender from Jan. 1, 2012, until Feb. 22, 2021.
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In a statement to Law360, counsel for the plaintiffs said they were pleased with the judge's ruling and "look forward to continued litigation against the banks to maximize recoveries for the benefit of class members."
The investor class is represented by Quinn Emanuel Urquhart & Sullivan and Cohen Milstein Sellers & Toll PLLC.
Click through to read Law360’s “Judge Says Stock Loan Antitrust Class Should Be Certified.”