Citi, Deutsche Bank and ANZ have been committed to trial in Australia over claims they illegally withheld shares to prevent a price drop.
The Australian Competition and Consumer Commission (ACCC) accused Citi and Deutsche Bank of collusion regarding a 2015 share issuance valued at A$2.5 billion ($1.85 billion) at the time. According to the ACCC, unsold shares were not released back into the market to prevent its price from falling.
ANZ – the two fellow global banks’ client – and six of its current and former executives have also been committed to trial.
«As this matter involves criminal charges, we will not be commenting further at this time,» ACCC chair Rod Sims said in a statement.
Criminal Cartel Charge
Under Australian regulation, a criminal cartel charge will result in a fine of up to A$10 million ($7.4 million) or triple the amount gained from the wrongdoing, whichever is greater, for the firm.
And for individuals, they could face a maximum penalty of A$420,000 ($311,000) and serve up to 10 years imprisonment.
The latest development follows a lower Sydney-based court’s rejection for a request to delay proceedings after the charges were first leveled in mid-2018. No defendants have entered a formal plea but all have said they will plead not guilty.
