Barclays Sued by Investors Over Multibillion Securities Blunder




  • In Business
  • 2022-09-24 00:20:07Z
  • By Bloomberg
 

(Bloomberg) -- Barclays Plc was sued by shareholders who claim they suffered significant losses after the British lender disclosed that paperwork errors led it to accidentally issue billions of dollars more in structured and exchange-traded notes than it had registered for sale.

Most Read from Bloomberg

  • Bank of England Says Paper Banknotes Only Good for One More Week

  • Risk Assets Crushed With Few Signs Drama Is Over: Markets Wrap

  • Japan to Restore Visa-Free Travel From Oct. 11 as Covid Pandemic Recedes

  • Larry Summers Warns Pound May Tumble Below $1 on 'Naive' UK Policies

  • Unless Rents Rise, Housing Is Set Up for an Epic Crash

The bank and its executives "made materially false and misleading statements" and failed to disclose important information about both the improper over-issuance of securities and the efficacy of internal controls and procedures, a group of investors led by public employee pension funds said in a proposed class-action complaint filed Friday in federal court in Manhattan.

The complaint cited Nigel Higgins, chairman of Barclays, saying that stopping the over-issuance wasn't "rocket science."

A spokesperson for Barclays didn't immediately respond to a request for comment.

Barclays said in March that it issued about $36 billion of investment products after registering with U.S. regulators in August 2019 to sell up to $20.8 billion, pushing the firm to repurchase affected securities and take a $591 million hit.

The disclosure sent the share price for the bank's American Depositary Receipts down about 11% on the next trading day, according to the complaint.

The suit was brought by the City of North Miami Beach Police Officers' and Firefighters' Retirement Plan and City of North Miami Beach General Employees' Retirement Plan.

Barclays and its executives "knew or were reckless" about whether public documents and statements shared by them were deceptive, investors said in the complaint.

The case is City of North Miami Beach Police Officers' and Firefighters' Retirement Plan v Barclays, 22-cv-08172, US District Court, Southern District of New York.

Most Read from Bloomberg Businessweek

  • US Is Inflating Its Debt Away After Unprecedented Spending Binge

  • This Is What Life's Like in the World's Strictest Covid Zero City

  • The Sneaky Genius of Apple's AirPods Empire

  • Wall Street's Bosses Reassert Themselves With the Return of Annual Culls

  • To Find Success at Work, Match Your Job With Your Personality

©2022 Bloomberg L.P.

COMMENTS

More Related News

Wall Street Rips Up Dollar Playbook as 2022
Wall Street Rips Up Dollar Playbook as 2022's Top Bet Crumbles

(Bloomberg) -- The dollar looked unstoppable earlier this year when investors were adding to bets on inflation and US rate hikes. Now they're turning against...

Asia Currencies Set for Best Month in Six Years on Fed Rate Bets
Asia Currencies Set for Best Month in Six Years on Fed Rate Bets

(Bloomberg) -- Asian currencies are set for their steepest monthly advance in more than six years, with the approaching end of the Federal Reserve's...

Eisai, Biogen Plunge After Report of Second Death in Groundbreaking Alzheimer
Eisai, Biogen Plunge After Report of Second Death in Groundbreaking Alzheimer's Drug Trial

(Bloomberg) -- Eisai Co shares fell the most in about 16 months following a report of a second death potentially linked to the groundbreaking experimental...

China
China's Covid-Hit Economy Leaves Door Open for PBOC Easing

(Bloomberg) -- China's worsening economic slump and a likely disruptive rollback of Covid restrictions will keep the central bank on its easing path...

Biden Set to Urge Congress to Intervene in Freight Rail Fight
Biden Set to Urge Congress to Intervene in Freight Rail Fight

(Bloomberg) -- President Joe Biden and Speaker Nancy Pelosi are moving to prevent a looming shutdown of the nation's freight railroads with the House...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business