Barclays shareholders have sued for wrongfully selling .6 billion in debt in the United States

Barclays shareholders have sued for wrongfully selling $17.6 billion in debt in the United States

By Jonathan Stemple

NEW YORK (Reuters) – Barclays (LON 🙂 Plc was sued Friday in a proposed US class action in which shareholders claim they were defrauded in connection with the UK bank’s $17.6 billion more debt sale than the regulators allowed.

A complaint filed in US District Court in Manhattan by two Florida pension plans seeks to hold Barclays liable for declines in ADR rates as costs rise due to the fatal mistake.

The complaint said Barclays made “false and materially misleading” assurances in its annual reports that its internal controls over financial reporting were effective.

He also said the bank exaggerated earnings, understated operating expenses and “litigation and behaviour,” by not disclosing over-disclosures in its 2021 earnings releases.

“Failure to establish controls for calculating the number of issued securities against the number of registered securities is a primary failure of internal control, which is so obvious as to be willfully reckless,” the complaint stated.

Barclays declined to comment. The accused include CEO CS Venkatakrishnan and his predecessor, Jes Staley.

The bank revealed in March that it had sold $15.2 billion in structured and exchange-traded bonds, more than the $20.8 billion allowed by US regulators. In July, the bank increased its oversold amount by $2.4 billion.

Barclays offered to buy back the excess of the securities, and on 28 July said it had set aside about 1.59 billion pounds ($1.73 billion now) in connection with the over-issuance.

The bank said on September 15 that investors had filed claims covering $7 billion in securities.

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The lawsuit filed Friday by the North Miami Beach Police Officers and Firefighters’ Retirement Plan and the North Miami Beach Public Employees’ Retirement Plan seeks compensation for Barclays ADR holders from February 18, 2021, to March 25, 2022.

The case is Retirement Plan for Police Officers and Firefighters of North Miami Beach et al. v. Barclays Plc et al., United States District Court, Southern District of New York, No. 22-08172.

(dollar = 0.921 pounds)

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