Top U.S. court restores alleged Libor manipulation lawsuit naming RBC
NEW YORK — A U.S. appeals court has ruled in favour of Charles Schwab Corp. and several of its mutual funds, giving new life to their lawsuits alleging 16 financial institutions including Royal Bank of Canada conspired to manipulate the benchmark Libor interest rate.
The 2nd U.S. Circuit court of Appeals in Manhattan disagreed with portions of a lower court’s decision dismissing Schwab’s claims, and remanded the case for proceedings.
Circuit Judge Gerard Lynch says in the 64-page decision Friday that the district court was “wrong to assume, at the pleading stage, that Schwab was not harmed by, and may have even benefited from, Libor manipulation.”