Deutsche Bank settles a case that alleges it and four other banks conspired to fix the price of gold
Deutsche Bank will pay $60 million to settle a class action lawsuit alleging it and four other banks conspired to fix the price of gold, according to documents filed Dec. 2 in the United States District Court for the Southern District of New York.
The bank has denied any wrongdoing. The agreement was first forged in April but now needs approval from the judge overseeing the case.
The suit was first filed in 2014 and took aim at the twice-daily “gold price fix” that for almost 100 years set the metal’s price. It said the nearly century-old ritual—in which five banks, including Deutsche Bank, then participated—created “an artificial and manipulated market” that they were able to unfairly profit from.
The suit and other investigations eventually led to a change in metal price-setting methods.
In October, Deutsche Bank agreed to pay $38 million to settle a suit that claims it acted to manipulate the silver market. That same month, U.S. district judge Valerie Caproni denied a bank motion to dismiss the suit.
The settlement does not affect the other banks that participate in the daily price-setting ritual: Bank of Nova Scotia, Société Générale, Barclays Bank, and HSBC Bank.