2023-08-23 21:39:15
(Addition of settlement details, charges, background and byline) by Jonathan Stempel
NEW YORK, Aug 23 (Archyde.com) – Goldman Sachs GS.N, JPMorgan Chase JPM.N, Morgan Stanley MS.N and UBS UBSG.S have agreed to pay $499 million to settle a competing lawsuit brought by investors who accused of conspiring to stifle competition in the stock loan market.
The settlement was disclosed Wednesday in a document filed in Manhattan federal court and must be approved by a judge. It also covers EquiLend, a joint venture of the defendants.
Investors struck deals for $580 million with five banks, including an $81 million deal (link) in February 2022 with Credit Suisse, which was acquired by UBS in June.
As part of the settlement, the banks agreed to cooperate in the lawsuit brought by the investors against the last defendant, Bank of America BAC.N.
Spokespersons for Bank of America and UBS declined to comment. The other banks did not immediately respond to requests for comment.
Investors have accused banks (link) of conspiring since 2009 to relegate the equity lending market to the “stone age” by boycotting startup platforms.
They claim the banks used their positions on EquiLend’s board to maintain monopoly control over the market and charge excessive fees to investors.
The trial began at (link) in August 2017.
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