The Blubber

Goldman Sachs, JPMorgan Chase, Morgan Stanley, and UBS have collectively agreed to pay $499 million to resolve an antitrust lawsuit lodged by investors. The lawsuit alleged that these financial institutions colluded to suppress competition within the stock lending market. The settlement, disclosed in a filing at a Manhattan federal court, is still subject to judicial approval.

The plaintiffs, led by several pension funds and a trading firm, contended that the banks engaged in a conspiracy since 2009 to hinder the advancement of the stock lending market by boycotting emerging platforms. They alleged that the banks utilized their positions on the board of EquiLend, a joint venture among the defendants, to preserve a monopoly over the market and impose exorbitant fees on investors.

This settlement adds to a series of agreements reached between investors and banks, totaling $580 million. Among these settlements was an $81 million resolution with Credit Suisse in February 2022, shortly before UBS acquired the bank.

While the financial institutions denied any wrongdoing, they chose to settle to avoid the potential complications, expenses, and disruptions associated with extended legal proceedings. As part of the settlement, the banks have also pledged to cooperate in the investors' ongoing case against the remaining defendant, Bank of America. The lawsuit was originally initiated in August 2017.