On Friday, Barclays successfully reduced a shareholders' lawsuit from up to £560 million ($727 million) to less than half at London’s High Court. The case involves allegations that the bank
misled the market regarding its private "dark pool" trading platforms.
A judge ruled that investors who based their claims solely on Barclays' share value or listed status could no longer proceed, expressing hope that this decision might encourage an early settlement before the planned October 2025 trial.
Barclays declined to comment on the ruling.
The lawsuit, backed by hundreds of institutional investors, arose after Barclays' market value fell by over £2 billion in 2014. This decline followed a complaint by New York’s attorney general about Barclays’ trading platform, "Barclays LX."
Investors claim the bank misrepresented Barclays LX—a "dark pool" trading venue where trade orders remain hidden until executed—and failed to disclose crucial information to shareholders.
In 2016, Barclays resolved the New York case, agreeing to a $70 million fine, admitting to securities violations, and appointing an independent monitor.
In July, Barclays sought to dismiss over half of the current case, which Judge Thomas Leech approved on Friday, dismissing claims worth approximately £330 million. The bank's lawyer, Helen Davies, argued that shareholder lawsuits require reliance on published information from the company, excluding claims from investors who based decisions solely on share value or listed status.
Signature Litigation, representing the claimants, stated that it might appeal, arguing that it is inappropriate for Barclays to exclude these investors from seeking statutory remedies. Photo by Peter Broster, Wikimedia commons.