Published on December 22, 2015
Posted in: Gold Manipulation
A class action lawsuit seeking $1 billion in damages on behalf of Canadian investors was launched last week in the Ontario Superior Court of Justice.
The class action alleges that the defendants, including The Bank of Nova Scotia, conspired to manipulate prices in the gold market under the guise of the benchmark fixing process, known as the London PM Fixing, for a ten-year period.
It is further alleged that the defendants manipulated the bid-ask spreads of gold market instruments throughout the trading day in order to enhance their profits at the expense of the class. This alleged conduct affected not only those investors who bought and sold physical gold, but those who bought and sold gold-related financial instruments.
The United States Department of Justice has an active and ongoing investigation into the defendants’ conduct. The Commodity Futures Trading Commission is also investigating the defendants’ conduct. Other law enforcement and regulatory authorities in the United States, Switzerland, and the United Kingdom have active investigations into the defendants’ conduct in the gold market.
The case is on behalf of all persons in Canada who, between January 1, 2004 and March 19, 2014, transacted in a gold market instrument either directly or indirectly, including investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a gold market instrument.
A copy of the Notice of Action can be found at https://www.sotosllp.com/class-actions/current-cases/gold-manipulation/. Potential class members can register at the website to obtain more information as the case progresses.
For more information on the case, contact: