A second class-action suit charges “manipulation” in the current method for setting gold prices—this time with investment firm AIS Capital Management as plaintiff.
The complaint, which seeks class-action status, claims that the five banks that set the London gold fix—Barclays, Deutsche Bank AG, HSBC Holdings, Bank of Nova Scotia and Société Générale SA—“combined, conspired, and agreed with one another and unnamed coconspirators to manipulate the prices of gold and gold derivatives contracts,” according to a report in The Wall Street Journal (subscription required).
It was filed March 10 in New York Federal Court. It follows a similar attempt at a class action by COMEX trader Kevin Maher.
The banks were not available for comment, but a spokesman for Deutsche Bank told the Journal the suit was “without merit.”
The five banks have set the London gold fix twice daily via teleconference, in a ritual that dates back to 1919.