Standard Bank sued in US metals price-fixing suit
STANDARD Bank, Goldman Sachs Group, Germany’s BASF and another big platinum and palladium dealers have been sued in the US in what the plaintiff’s law firm called the first nationwide class action over alleged price fixing of the metals.
In a complaint filed on Tuesday in the US District Court in Manhattan, units of Goldman, BASF, HSBC Holdings and Standard Bank were accused of having conspired since 2007 to rig the twice-daily platinum and palladium “fixings” and the prices of futures and options based on those fixings.
The plaintiff, Modern Settings, a Florida-based company that said it bought the metals, claimed purchasers lost millions of dollars because the defendants illegally shared customer data, used that information to engage in “front-running” of expected price moves, and made phantom “spoof” orders.
The London Metal Exchange said it would from Monday take charge of platinum and palladium price fixing, and use a new electronic platform.
The Hong Kong Exchanges and Clearing unit said the platform would replace a benchmark system established in 1989, and run by Goldman, BASF, HSBC and Standard.
The complaint said such changes “have come too late” for Modern Settings and other prospective class members. The complaint seeks unspecified damages for the defendants’ alleged violations of US antitrust and commodities laws.
Regulators around the world have tightened scrutiny of pricing benchmarks in recent years after uncovering evidence of rigging in currencies and the London Interbank Offered Rate.
The more stringent regulation has spawned new price-setting platforms for gold, silver, platinum and palladium. Metals buyers have filed similar lawsuits this year accusing banks of gold and silver price fixing.
Spokesman for Goldman Michael DuVally and HSBC spokeswoman Juanita Gutierrez declined to comment. BASF and Standard Bank did not immediately respond to requests for comment. – Reuters