Barclays Defeats Suit Claiming Volatility-Linked Notes Fraud (2)

A short-seller who was forced to close out his position in Barclays Bank PLC‘s volatility-linked VXX securities lacks securities fraud claims against the bank, a federal court ruled Friday.

Michael Puchtler failed to adequately allege fraudulent intent, Judge Lewis J. Liman said for the US District Court for the Southern District of New York. And crucially, the investor didn’t show his losses were caused by fraud—a failing he can’t fix by re-pleading his claims, Liman said in dismissing the lawsuit with finality.

The suit by Puchtler, who isn’t representing a class, is part of the legal fallout of the ...