J.P. Morgan Chase & HSBC Silver Antitrust Class Action
Girard Gibbs LLP represents investors in a class action lawsuit against J.P. Morgan Chase & Co. and HSBC, alleging that the banks violated federal antitrust laws by manipulating the prices of silver futures and option contracts. Beginning in early 2008, HSBC and J.P Morgan reportedly built up extremely large short positions in silver futures and options on the Commodity Exchange Inc. (COMEX), with J.P. Morgan increasing its silver derivative holdings by over $6 billion dollars or 220 million ounces.
The class action lawsuit alleges that J.P. Morgan and HSBC used a variety of tactics to artificially drive down the price of silver. The complaint alleges that HSBC and J.P. Morgan made large, coordinated trades, among other things, to artificially lower the price of silver at key times when the precious metal should have been trading at higher levels. By depressing the price of silver, the class action alleges that the defendants made substantial illegal profits while harming investors and restraining competition in the COMEX silver futures market.