Bank of America is being sued over allegations that the bank manipulated foreign exchange markets.
Robert Charles filed the lawsuit on June 24 in United States District Court in New York against Bank of America, claiming the bank manipulated the foreign exchange spot market, which caused prices to fluctuate.
The lawsuit states Bank of America worked to fix prices at the WM Reuters Rates in London, which is an important “benchmark rate” in foreign exchange futures contracts. Several of the bank's executives have pleaded guilty to criminal charges in the United States and paid billions of dollars in fines over the manipulation, according to the lawsuit.
The bank is accused of colluding with others to fix the foreign exchange spot prices and benchmark rates to work in the bank's favor.
“(Bank of America) concealed their anticompetitive actions by, inter alia, engaging in secret communications in furtherance of their conspiracy,” according to the suit. “These communications occurred within private chat rooms, instant messages and through email, none of which was reasonably available to (Charles) or the Class members.”
The lawsuit seeks class action status for those who invested in the foreign exchange market. Charles is also seeking an unspecified amount in damages plus court costs.
Charles is represented by Louis F. Burke and Leslie Wybiral of Louis F. Burke P.C. in New York City; Michael Brickman of Richardson, Patrick Westbrook & Brickman LLC in Charleston, North Carolina; and James C. Bradley, Nina Fields Britt and Matthew A. Nickles of the same law firm in Mount Pleasant, South Carolina.
United States District Court Southern District of New York case number 1:15-cv-04926.