UBS along with Goldman Sachs, JPMorgan and Morgan Stanley have agreed to pay nearly half a billion dollars to settle an antitrust lawsuit in the US over stock lending.
UBS, Goldman Sachs, JPMorgan and Morgan Stanley have agreed to pay $499 million to settle an antitrust lawsuit by investors who accused them of conspiring to suppress competition in the stock lending market, according to a «Reuters» report citing a filing in a Manhattan federal court.
The plaintiffs, led by four pension funds and a trading firm, allege that the banks attempted to do so since 2009 by boycotting startup platforms. This includes the use of their positions on the board of EquiLend – a securities lending joint venture among the defendants – to maintain a market monopoly and charge excessive fees.
The banks deny wrongdoing but settled to avoid the risk, cost and inconvenience of further litigation.
Governance Changes, BofA
In addition to obtaining a judge's approval, the defendants also agreed to make governance changes at EquiLend, such as restrictions to limit board control, and to cooperate with the investors in the case against Bank of America, the final defendant.
In total, investors have now reached $580 million in settlements with five banks, including a $1 million accord with Credit Suisse in February 2022.
