Barclays sued over mortgage-backed securities. The Justice
Department has sued Barclays Bank PLC and several of its U.S. affiliates over the sale of risky mortgagebacked securities.
The lawsuit, filed Thursday, seeks to recover civil penalties for fraud from the British bank. It accuses the bank and its employees of misrepresenting the quality of the loans they sold to investors between 2005 and 2007. The Justice Department says investors lost billions of dollars.
Barclays said it denies the allegations in the lawsuit and says the claims “are disconnected from the facts.