SIFMA Backs Barclays in Dark Pool Lawsuit

The U.S. District Court for the Southern District of New York improperly granted class certification to a group of Barclays PLC investors claiming that the global financial services provider made false statements about the operation of its dark pool, the Securities Industry and Financial Markets Association said Feb. 23 (Strougo v. Barclays PLC, 2d Cir., 16-0450, 2/23/16).

The district court’s opinion disregards the U.S. Supreme Court’s guidelines for determining whether to certify a class and is part of a “developing, erroneous trend in the Southern District of New York,” the securities trade association said.

“If it is ...