Gold Price Class Action Lawsuit Alleges Market Manipulation

An Ontario class action lawsuit seeking $1 billion in damages on behalf of gold investors against several financial institutions is alleging gold market prices were being manipulated. The gold price manipulation class action lawsuit claims that a conspiracy in the gold market is causing gold and gold-related investment prices to be unreasonably increased, fixed, decreased, or controlled to benefit the allegedly involved financial institutions.

Class Members claim they unknowingly bought fixed-price gold and suffered losses due to its decreased value. The gold price manipulation class action lawsuit is suing for violations including breach of contract, civil conspiracy, and breach of foreign law over an international gold price-fixing scheme.

A partial settlement in the gold price-fixing class action lawsuit Canada has been approved, involving some of the financial institutions. The Class Members received almost $3.5 million from one collective entity, but the class action lawsuit against the rest of the co-conspirators wages on.

Investors Disadvantaged by Gold Price Manipulation 

On Dec.18, 2015 plaintiffs Julius Di Filippo and David Caron filed the gold price manipulation class action lawsuit against several financial institutions including The Bank of Nova Scotia, Barclays, Deutsche Bank, HSBC, and others for conspiring to fix gold prices to their advantage. 

From at least Jan. 1, 2004 until June 30, 2013, the class action lawsuit alleges several financial institutions manipulated gold prices so that the fixed price was marked at a fabricated level compared to actual competitive market prices. The fake gold prices valued all gold purchasing options, not just physical gold, causing losses to all who invested in gold or gold-backed investments.

Julius and David made several transactions of gold market instruments, either in the form of gold or gold-related investments like gold certificates, that they claim were negatively affected by manipulation by the accused financial institutions. The values of the claimants’ gold are forged from the fixed price, so the returns on the gold investments were less than they would have been if not for the alleged conspiracy to manipulate the gold prices. 

The gold price manipulation class action lawsuit claims that the Class Members were disadvantaged from being able to buy legal, non-exploited, competitive market-priced gold and endured losses as a result of the actions of the accused.

“Conspiratorial Acts” by Major Financial Institutions

The gold market manipulation lawsuit claims the price-fixing institutions kept in contact twice a day via conference call to discuss the scheme and swap information. It is also alleged the institutions electronically shared private customer order information to manipulate gold prices to increase their profits at the detriment of the Class Members.

The Class Members are seeking aggravated, exemplary, and punitive damages citing a few charges including civil conspiracy, breach of contract, breach of competition law, breach of foreign law, and unjust enrichment.

The gold price-fixing class action lawsuit claims that loss and damages on the Class Members’ behalf would not have occurred if not for the conspiracy to manipulate gold prices.

Furthermore, the Class Members were deprived of profits from their gold investments due to the alleged meetings between the financial institution to share information and conspire to fix gold prices and manipulate the market.

And lastly, in breaches of foreign law, these reported actions took place in several places including Asia, Europe, Germany, Switzerland, the United Kingdom, and the United States. 

Gold Price-Fixing Class Action Lawsuit Settlement Approved

On May 29, 2019, the Ontario Superior Court of Justice approved a settlement in the gold price-fixing class action lawsuit. Deutsche Bank AG, Deutsche Bank Securities Limited, and Deutsche Bank Securities, Inc., settled by paying the Class Members $3,350,360. The class action settlement money was held in trust for the Class Members, and the court determined how the money was distributed.

Another settlement was reached in the U.S. District Court in Manhattan for related gold price manipulation. Deutsche Bank settled in an amount of $60 million to gold investors and traders who were affected by gold price fixing in the U.S.

 The settlements from Deutsche Bank (collectively) are not an admission of any liability.

The other financial institutions have not agreed to settle and the gold price manipulation class action lawsuit will continue against them.

Top Class Actions will post the open settlement information and claim filing instructions once they become available. Click on the “Follow Article” at the top of this page to get the latest updates about the gold price-fixing class action lawsuit settlement by using your free Top Class Actions account. For the latest updates, keep checking ca.TopClassActions.com or sign up for our free newsletter.

Have you invested in or bought gold since 2004? Do you have concerns about gold price manipulations? Let us know in the comments.

David, Julius, and Class Members are represented by David Sterns, Louis Sokolov, Rory McGovern, and Sabrina Callaway of Sotos LLP, and Robert L. Gain, and Kirk M. Baert of Koskie Minsky LLP, and Reidar Mogerman, David G.A. Jones, and Michelle Segal of Camp Fiorante Matthews Mogerman. 

The Gold Price Manipulation Class Action Lawsuit is Julius Di Filippo, et al., v. The Bank of Nova Scotia, et al., Case No. CV-15-543005, in The Superior Court of Justice, Ontario, Canada.

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