The Police Retirement System of St Louis v. Bank Of Nova Scotia et al

Filing 75

TRANSFER ORDER re: pldg. ( 1 in MDL No. 2673) Transferring 2 action(s) to Judge Paul G Gardephe in the Southern District of New York.Signed by Judge Sarah S. Vance, Chair, PANEL ON MULTIDISTRICT LITIGATION, on 12/8/2015. Associated Cases: MDL No. 2673 et al. (dn)

UNITED STATES JUDICIAL PANEL
on
MULTIDISTRICT LITIGATION

IN RE: TREASURY SECURITIES AUCTION
ANTITRUST LITIGATION

MDL No. 2673

TRANSFER ORDER

Before the Panel:* Plaintiffs in two actions in the Southern District of New York move
under 28 U.S.C. § 1407 to centralize this litigation in that district. This litigation currently consists
of 25 actions pending in three districts, as listed on Schedule A. Since the filing of the motion, the
Panel has been notified of 14 related actions.1 The actions allege that over 20 defendant banks
conspired to manipulate Treasury securities auctions overseen by the Federal Reserve Bank of New
York, as well as the market for derivative financial products.2
All responding plaintiffs and defendants support centralization, but they disagree on the
transferee district. Plaintiffs in 23 actions on the motion and four potential tag-along actions support
centralization in the Southern District of New York. This district also has the unanimous support
of the defendants. Plaintiffs in the Northern District of Illinois action on the motion, one Southern
District of New York action (Varner), and three potential tag-along actions request the Northern
District of Illinois.

*

Judge Marjorie O. Rendell, Judge Lewis A. Kaplan, and Judge Ellen Segal Huvelle took
no part in the decision of this matter. Additionally, certain Panel members who could be members
of the putative classes in this litigation have renounced their participation in these classes and have
participated in this decision.
1

These and any other related actions are potential tag-along actions. See Panel Rules 1.1(h),
7.1 and 7.2.
2

Defendants are: Bank of Nova Scotia, New York Agency; BMO Capital Markets Corp.;
BNP Paribas Securities Corp.; Barclays Capital Inc.; Cantor Fitzgerald & Co.; Citigroup Global
Markets Inc.; Credit Suisse Securities (USA) LLC; Daiwa Capital Markets America Inc.; Deutsche
Bank Securities Inc.; Goldman, Sachs & Co.; HSBC Securities (USA) Inc.; Jefferies LLC; J.P.
Morgan Securities LLC; Merrill Lynch, Pierce, Fenner & Smith Inc.; Mizuho Securities USA Inc.;
Morgan Stanley & Co. LLC; Nomura Securities International Inc.; RBC Capital Markets, LLC; RBS
Securities Inc.; SG Americas Securities (USA) LLC; TD Securities (USA) LLC; UBS Securities
LLC; Bank of America Corp.; Commerz Markets LLC; Countrywide Securities Corp.; and CIBC
World Markets Corp.

-2On the basis of the papers filed and the hearing session held, we find that these actions
involve common questions of fact, and that centralization will serve the convenience of the parties
and witnesses and promote the just and efficient conduct of this litigation. These actions share
common factual questions arising out of allegations that over 20 financial institutions, referred to
as primary dealers, conspired to manipulate the pricing of (1) U.S. Treasury securities (Treasury
bills, notes, bonds, and related debt instruments) at Treasury auctions overseen by the Federal
Reserve Bank of New York; and (2) derivative financial products, such as Treasury futures and
options, that are based on or otherwise tied to the price of Treasury securities. In particular, all
actions allege that the manipulation of pricing information by defendants occurred in the “when
issued” market – the pre-auction period between the date the Federal Reserve Bank of New York
announces the details of an upcoming auction and the date the new securities are issued. Discovery
is likely to involve numerous third parties, including the Federal Reserve Bank of New York, the
New York Department of Financial Services, and former primary dealers of Treasury securities and
their employees. Additionally, all actions are on behalf of overlapping putative nationwide classes
of persons and entities who transacted in Treasury securities, derivatives, and financial products
linked to the interest rates of Treasury securities, and assert claims under the Sherman Act and the
Commodity Exchange Act. Centralization will eliminate duplicative discovery; prevent inconsistent
pretrial rulings, including with respect to class certification; and conserve the resources of the parties,
their counsel and the judiciary.
We conclude that the Southern District of New York is the appropriate transferee district for
this litigation. Nearly all defendants have their U.S. headquarters in or near New York or conduct
their operations concerning Treasury securities there. The Federal Reserve Bank of New York, which
oversees the Treasury auctions at issue, also is located in this district. Moreover, the vast majority
of actions are pending in this district. Judge Paul G. Gardephe, who presides over 30 actions in that
district, is an experienced transferee judge. We are confident he will steer this litigation on a prudent
course.
IT IS THEREFORE ORDERED that the actions listed on Schedule A and pending outside
the Southern District of New York are transferred to the Southern District of New York and, with
the consent of that court, assigned to the Honorable Paul G. Gardephe for coordinated or
consolidated pretrial proceedings.

PANEL ON MULTIDISTRICT LITIGATION

Sarah S. Vance
Chair
Charles R. Breyer
Catherine D. Perry

R. David Proctor

IN RE: TREASURY SECURITIES AUCTION
ANTITRUST LITIGATION

MDL No. 2673

SCHEDULE A

Northern District of Illinois
THE POLICE RETIREMENT SYSTEM OF ST. LOUIS v. BANK OF NOVA SCOTIA,
NEW YORK AGENCY, ET AL., C.A. No. 1:15-08417
Southern District of New York
STATE-BOSTON RETIREMENT SYSTEM v. BANK OF NOVA SCOTIA, NEW
YORK AGENCY, ET AL., C.A. No. 1:15-05794
BEAVER COUNTY EMPLOYEES' RETIREMENT FUND, ET AL. v. BANK
OF NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-05807
ARKANSAS TEACHER RETIREMENT SYSTEM v. BANK OF NOVA SCOTIA,
NEW YORK AGENCY, ET AL., C.A. No. 1:15-05830
FEDERIGHI v. BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL.,
C.A. No. 1:15-05843
UNITED FOOD AND COMMERCIAL WORKERS UNION AND PARTICIPATING
FOOD INDUSTRY EMPLOYERS TRI-STATE PENSION FUND v. BANK OF
NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-05931
INTER-LOCAL PENSION FUND GRAPHIC COMMUNICATIONS CONFERENCE
OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS v. BANK OF
NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-05939
UNITED INTERNATIONAL INSURANCE COMPANY v. BANK OF NOVA
SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-05957
IBEW LOCAL 640 ARIZONA CHAPTER NECA PENSION TRUST FUND v. BMO
CAPITAL MARKETS CORP., ET AL., C.A. No. 1:15-06003
CITY OF PONTIAC POLICE AND FIRE RETIREMENT SYSTEM, ET AL. v. BANK
OF NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-06072
RUTGERS ENHANCED INSURANCE COMPANY v. BANK OF NOVA SCOTIA,
NEW YORK AGENCY, ET AL., C.A. No. 1:15-06129
ST. JOHN v. BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL.,
C.A. No. 1:15-06139
OKLAHOMA FIREFIGHTERS PENSION AND RETIREMENT SYSTEM v. BANK
OF NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-06474
CLEVELAND BAKERS AND TEAMSTERS PENSION FUND, ET AL. v. BANK OF
NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-06782
UNITED FOOD AND COMMERCIAL WORKERS LOCAL 1776 &
PARTICIPATING EMPLOYERS PENSION FUND v. BANK OF NOVA SCOTIA,
NEW YORK AGENCY, ET AL., C.A. No. 1:15-06853

- A2 FOUTS v. BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL.,
C.A. No. 1:15-06892
EMPLOYEES RETIREMENT SYSTEM OF RHODE ISLAND, ET AL. v. BANK OF
NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-07006
CITY OF ATLANTA FIREFIGHTERS' PENSION FUND v. BANK OF
NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-07111
VARNER v. BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL.,
C.A. No. 1:15-07325
FRANKLIN, ET AL. v. BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL.,
C.A. No. 1:15-07329
LABORERS LOCAL 100 AND 397 HEALTH AND WELFARE FUND, ET AL. v.
BANK OF NOVA SCOTIA, NEW YORK AGENCY, ET AL., C.A. No. 1:15-07385
BANK OF JERUSALEM, LTD. v. BANK OF NOVA SCOTIA, NEW YORK
AGENCY, ET AL., C.A. No. 1:15-07390
ALASKA ELECTRICAL PENSION FUND v. BANK OF NOVA SCOTIA, NEW
YORK AGENCY, ET AL., C.A. No. 1:15-07420
ENDEAVOR TRADING, LLC v. BANK OF NOVA SCOTIA, NEW YORK AGENCY,
ET AL., C.A. No. 1:15-07481
District of Virgin Islands
EMPLOYEES' RETIREMENT SYSTEM OF THE GOVERNMENT OF THE
VIRGIN ISLANDS v. BANK OF NOVA SCOTIA, NEW YORK AGENCY,
ET AL., C.A. No. 1:15-00055