NEW YORK (CN) - The Second Circuit remanded the denial of class-action status to companies that accused major investment banks of conspiring to fix underwriting fees on midsize initial public offerings.
In 2000 underwriters such as Citigroup's Salomon Smith Barney, Morgan Stanley and The Goldman Sachs Group were sued by companies that issued IPOs generating between $20 million and $80 million net profit. The district court denied class status on grounds that two of the named plaintiffs, both assignees of the interest in the antitrust litigation, were not members of the proposed class. But the circuit found that "although the plaintiffs do not fall within the definition of the class as set forth in the complaint," the assignees "are not categorically excluded from acting as class representatives." Vacated and remanded. See ruling.
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