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Policy: Law

Financial institutions settle bid-rigging allegations with West Virginia

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West Virginia,Law,Legal Newsline
Morrisey

Morrisey

CHARLESTON, W.Va. (Legal Newsline) – West Virginia Attorney General Patrick Morrisey announced a $950,000 settlement on Monday with three financial institutions that allegedly rigged bids, fixed prices and manipulated the markets for municipal derivatives.

Trinity Funding Co. LLC, Trinity Plus Funding Co. LLC and GE Funding Capital Market Services were among more than 20 banks and financial companies sued by Morrisey’s office for allegedly violating the Sherman Antitrust Act and the West Virginia Antitrust Act. Morrisey’s office previously reached settlements with JPMorgan Chase, Morgan Stanley, Bank of America and Royal Bank of Canada to resolve similar allegations. Lawsuits against the other banks and financial institutes are ongoing.

Most of the $950,000 settlement fund will go to state agencies that invested in municipal derivatives, including Fairmont State University’s Board of Governors, West Virginia Housing Development Fund, the West Virginia Department of Highways, the West Virginia School Building Authority, Shepherd University, the West Virginia Hospital Finance Authority, the West Virginia Economic Development Authority, West Virginia University’s Board of Governors, the West Virginia Water Development Authority and the West Virginia Higher Education Policy Commission.

“We are pleased our office could reach this settlement with the three financial institutions,” Morrisey said. “Our office worked diligently on this case, and it is good to see the work pay off.”

Trinity Funding, Trinity Plus Funding and GE Funding Capital Market Services denied the allegations as part of the settlement.

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