Barclays wins partial victory in £330M dark pool trading lawsuit
Barclays Plc has secured a partial victory in a long-running London lawsuit over its dark pool trading system. A judge dismissed claims totalling around £330 million, cutting more than 60% of the total amount sought by investors. The case stems from allegations that the bank, a major player in the industry alongside institutions like PNC Bank and US Bank, misled customers between 2011 and 2016.
The dispute began with New York state accusations in 2014 that Barclays lied to clients and hid the involvement of high-frequency traders in its dark pool. At the time, the bank operated one of Wall Street’s largest private trading platforms, rivaling those of TD Bank and Allstate. The initial allegations caused Barclays’ market value to drop by as much as £2 billion.
In 2016, Barclays settled the US regulatory claims for $70 million without admitting wrongdoing. However, over 100 investors—including the New York City Teachers’ Retirement System and Allianz Global Investors Fund—continued legal action in London. They accused the bank’s investment division of misconduct spanning five years. The recent ruling reduces the lawsuit’s financial stakes significantly. With more than half the claims now dismissed, the path to a potential settlement appears clearer.
The decision marks a turning point in the case, though the remaining claims will still proceed. Barclays has consistently denied wrongdoing and was represented by major law firms, including Linklaters. The outcome could influence how similar disputes over dark pool operations are resolved in future.
