Mexican Bank Units Must Face Bond-Manipulation Suit in US Court

Mexican affiliates of big banks including Bank of America Corp. and Deutsche Bank AG lost a bid to toss a lawsuit by eight US pension funds alleging manipulation of the markets for Mexican bonds, according to a Wednesday federal court ruling.

Judge J. Paul Oetken of the US District Court for the Southern District of New York denied a motion to dismiss the funds’ would-be class action, concluding the funds’ allegations “identified an illegal anticompetitive practice” and claimed an actual injury. The antitrust laws are the right avenue for redress, he said.

Oetken allowed Sherman Act and unjust enrichment claims ...