Barclays Defeats Short-Seller’s Appeal Over Notes’ Suspension

A short-seller who lost money on Barclays Bank PLC‘s volatility-linked VXX securities failed to allege securities fraud by the bank, the Second Circuit said Friday in affirming the suit’s dismissal.

Michael Puchtler didn’t show that top executives’ statements after Barclays lost “well-known” issuer status were reckless, the US Court of Appeals for the Second Circuit said in an unsigned, unpublished opinion.

The suit by Puchtler, who wasn’t representing a class, was part of the legal fallout of the Barclays PLC unit’s loss of “well-known seasoned issuer” status in 2017 and its alleged failure to adapt to that change by ...