Goldman Sachs (NYSE:GS) Group Inc, Morgan Stanley (NYSE:MS), JPMorgan Chase & Co (NYSE:JPM) and UBS AG have agreed to pay $499 million to settle an antitrust class action by US pension funds over the banks’ control of the market for stock loans used for hedging and short selling, Bloomberg reported late Wednesday.
The media outlet noted that Credit Suisse AG last year agreed to pay $81 million to settle the claims against it.
The four banks also agreed to cooperate in the litigation against Bank of America Corp (NYSE:BAC), the sole remaining defendant, according to a Wednesday court filing by the pension funds in Manhattan federal court.
The court filing also revealed that Goldman, Morgan Stanley, JPMorgan and UBS continue to deny any wrongdoing despite agreeing to settle.
The August 2017 lawsuit accused the major banks of colluding to hinder the development of all-electronic trading systems that match lenders and borrowers of stock, while also using EquiLend, a joint-venture trading and clearing service, as the forum for collusion.
The plaintiffs were led by Iowa Public Employees’ Retirement System.
“By facilitating the ability of the stock lending market to become more competitive and transparent, plaintiffs believe that these reforms generate significant value for both existing class members and future borrowers and lenders in the stock lending market,” the pension funds wrote in the filling.
The settlement still requires a judge’s approval.
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