Goldman Settles Rate Rigging Lawsuit For $56.5 Million

REUTERS/Lucas Jackson/Files

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Robert Donachie Capitol Hill and Health Care Reporter
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Goldman Sachs agreed to pay $56.5 million to settle a class action lawsuit in U.S. courts that alleges it and other banks rigged interest rates in the derivatives market.

The settlement was agreed to Friday after papers were filed in a Manhattan court, Reuters reports. Goldman’s agreement comes after several banks promised to pay a combined $324 million to resolve the lawsuit.

Goldman has agreed to pay for lawyers for the plaintiffs’ investigation, which could be used in further litigation against the other remaining banks.

The lawsuit alleges that investors at the bank participated in rapid, high volume trading before interest rates were set each morning. The suit also says that Goldman and other banks colluded with a UK brokerage firm to delay until the banks moved interest rates to where they wanted them to be that day.

Banks included in the suit that have already settled, include: JP Morgan Chase, Bank of America, and Deutsche Bank, among others.

Morgan Stanley, Wells Fargo, and others still have yet to reach a settlement.

Goldman recently raised $4.5 billion for a new corporate buyout fund — the first since the recession of 2007, the Wall Street Journal reports.

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