Antitrust Law Daily Wrap Up, ANTITRUST—S.D.N.Y.: Repleaded firefighter pension system's antitrust complaint over British government securities price-fixing survives dismissal, (Jul 20, 2026)
Law Firms Mentioned:Scott&Scott, Attorneys at Law, LLP | Simpson Thacher & Bartlett LLP
Organizations Mentioned:Deutsche Bank AG | Deutsche Bank Aktiengesellschaft | Deutsche Bank Securities, Inc. | Ohio Carpenters Pension Fund | Oklahoma Firefighters Pension and Retirement System | Simpson Thacher
By Kenneth H. Ryesky, M.B.A., J.D.
"Smoking gun" evidence included alleged chats of agreements among securities traders to "pump up," "slam," and/or "build the brick wall" regarding prices of securities.
The federal district court in New York City has denied dismissal of an amended complaint regarding UK government securities price-fixing. After the Oklahoma Firefighters Pension and Retirement System (OFPRS) purchased Gilts in the secondary markets, it filed a putative class action lawsuit against five Gilt-edged Market Makers (GEMMs) banks and their respective parent companies, alleging collusion among the GEMM bank bond traders that resulted in OFPRS and other investors The initial complaint had been dismissed, but the amended complaint cured all of the deficiencies that caused the initial complaint to fail. The court found that the amended complaint plausibly alleged DBAG's participation in the alleged conspiracy and plausibly suggested express agreements to manipulate the prices of the Gilts (Oklahoma Firefighters Pension and Retirement System V. Deutsche, No. 1:23-cv-05095-JGK (S.D.N.Y. Jul. 17, 2026)).
Background. The term "Gilts" refers to bonds issued by the United Kingdom Debt Management Office (DMO); it is a reference to the historical practice of being printed on paper with think gold leaf, or "Gilt-edged securities." Being backed by the UK government, such securities are considered low risk. Gilts are issued by the DMO through an auction process, whereby banks designated as Gilt-edged Market Makers (GEMMs) are the initial bidders who then are required to actively distribute and market the Gilts to lower-tiered investors and dealers and otherwise maintain the Gilts' liquidity in the secondary markets.
The Oklahoma Firefighters Pension and Retirement System (OFPRS) has purchased Gilts in the secondary markets. On May 24, 2023, the UK Competition & Markets Authority (CMA) announced that its investigation had found instances of bond market traders from GEMM banks having conducted collusive discussions with one another in Bloomberg chatrooms, and that the discussions "included details on pricing and other aspects of their trading strategies."
On June 16, 2023, OFPRS filed a putative class action lawsuit against five GEMM banks and their respective parent companies, alleging collusion among the GEMM bank bond traders that resulted in OFPRS and other investors. On September 13, 2024, the GEMM bank defendants' joint motion to dismiss for failure to state a claim was granted without prejudice. On January 22, 2025, a preliminary settlement with GEMM banks (and their relevant affiliated entities) Citigroup, HSBC, RBC, and Morgan Stanley was approved; a fairness hearing on the settlement has yet to be held.
On September 3, 2025 OFPRS, joined by the Ohio Carpenters Pension Fund (OCPF) and market trader Hehmeyer LLC (Hehmeyer), filed an amended complaint against remaining GEMM bank defendants Frankfurt-based Deutsche Bank AG (DBAG) and its US dealer affiliate subsidiary Deutsche Bank Securities Inc. (DBSI). DBAG and DBSI moved to dismiss.
US subsidiary involvement allegations. The judge ruled that the amended complaint had plausibly pleaded the involvement of DBSI in the alleged conspiracy. Here, the amended complaint alleged that DBSI executed the purchase or sale of DBAG's Gilts to US parties. "When a DBSI salesperson received an order from a United States customer to buy or sell a Gilt, the salesperson requested a quote from DBAG," and facilitated the transaction per DBAG's quoted terms. The complaint also gave examples of chats between DBAG traders and traders from other GEMM banks. From these particulars, it can reasonably be inferred at the pleading stage that DBSI was a participant in transactions resulting from DBAG's alleged collusive behavior.
For similar reasons, the court found that it had could exercise specific personal jurisdiction over DBAG based upon the actions of DBSI as its agent.
Alleged conspiracy participation. The court found that the amended complaint plausibly alleged DBAG's participation in the alleged conspiracy. Although chat transcripts between DBAG traders and others included phrases such as "pump 'em up" and "slam the market," the complaint went beyond trader jargon and included discussions of "specific securities, specific timing, specific price points, and expected investor behavior in a way that plausibly supports an inference of coordinated price manipulation." This cured the dearth of particulars that led to the dismissal of the initial complaint; when read in context, the allegations plausibly suggested express agreements to manipulate the prices of the Gilts.
Antitrust standing. The judge found that the amended complaint plausibly alleged antitrust standing. Here, at the pleading stage, identify it was not necessary to identify "which particular chat affected which particular transaction." The Gilt market in the US was the market allegedly restrained by the conspiracy, and the plaintiffs pleaded that they traded in that very market, and the prices in that market were distorted by the alleged collusion by the GEMM traders. Antitrust injury was adequately stated.
OFPRS, OCPF, and Hehmeyer were all found to be efficient enforcers. Although Hehmeyer traded in Gilt futures and not Gilts themselves, its alleged injuries were proximate enough for it to assert the interests of other class members.
Time limitations. The court ruled that the claims were not barred by the four-year statute of limitations because the statute was equitably tolled for fraudulent concealment. As a price-fixing scheme, the conspiracy was self-concealing. Moreover, the chatroom transcripts included mutual directives to not disclose the substance of the communications, including a DBAG trader saying "i’m not gonna moan / wont even mention it."
The CMA's announcement of its investigative findings regarding conduct in the UK did not in and of itself put the plaintiffs on notice of a conspiracy in the US. Furthermore, the plaintiffs' regular ongoing monitoring of their investments and keeping current on general market developments was sufficient at the pleading stage to show due diligence. The court thus declined to dismiss the case on the basis of tardy filing beyond the statute of limitations.
The Case is No. 1:23-cv-05095-JGK.
Judge: Koeltl, J.
Attorneys: Amanda F. Lawrence (Scott&Scott, Attorneys at Law, LLP) for Oklahoma Firefighters Pension and Retirement System. Andrew Ward (Simpson Thacher & Bartlett LLP) for Deutsche Bank Aktiengesellschaft.
Companies: Oklahoma Firefighters Pension and Retirement System; Deutsche Bank Aktiengesellschaft
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