Barclays Plc was prosecuted by shareholders who acknowledge and withstood their substantial losses after the British lender disclosed paperwork errors.
The complaint cited Nigel Higgins, chairman of Barclays, saying that stopping the over-issuance happened.
Barclays announced in March that it allocated approximately $36 billion in investment products after reporting with U.S. regulators, pushing the firm to repurchase affected securities and take a $591 million hit.
The acknowledgment sent the share price for the bank’s American Depositary Receipts down nearly 11% on the following trading day.
The suit was brought by the City of North Miami Beach Police Officers’ and Firefighters’ Retirement Plan and the City of North Miami Beach General Employees’ Retirement Plan.
“Barclays and its administrators ‘knew or were reckless about whether public documents and statements shared by them were dishonest“, investors said in the complaint.
The lawsuit is stated as ‘City of North Miami Beach Police Officers’ and ‘Firefighters’ Retirement Plan v Barclays’, 22-cv-08172, US District Court, Southern District of New York.