Barclays to ask for dismissal of dark pool lawsuit

Barclays Canary Wharf

Barclays asked a judge to throw out New York Attorney General Eric Schneiderman’s lawsuit that accused the bank of lying to customers and hiding the role of high-frequency traders to boost its dark pool profile.

Bloomberg News reports that the London-based bank said the lawsuit fails to show any investors were harmed and is based on 'clear and substantial factual errors', according to a filing Thursday in Manhattan state court. The attorney general’s office also took New York’s securities law - the Martin Act - too far in bringing the lawsuit, the bank alleged.

The law, a powerful anti-fraud statute that can be used by the New York attorney general’s office, is 'limited to actions for fraud in the purchase or sale of ‘securities’ and doesn’t extend to all actions related to finance', Barclays said. The allegations in the case concern an alternative trading platform known as Barclays LX and 'do not identify any misstatements concerning any ‘security,’' according to the filing.

To access the complete Bloomberg News article hit the link below:

Barclays Seeks Dismissal of New York Dark Pool Lawsuit

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