Barclays, the British bank, and its former CEO, Jes Staley, are facing a class-action lawsuit alleging they misled investors about their relationship with convicted sex offender Jeffrey Epstein.
Investors Claim Deception
The lawsuit, filed by pension funds in New York and St. Louis on behalf of Barclays American Depositary Receipt (ADR) holders, claims that Barclays and Staley defrauded investors by downplaying or hiding the extent of their ties to Epstein. The goal, according to the plaintiffs, was to protect Barclays’ reputation and maintain its stock price. A US judge has allowed the case to proceed, finding that the plaintiffs have presented a plausible case of intentional deception.
The Alleged Fraud
The lawsuit alleges the fraudulent activity spanned from July 2019 to October 2023. This period includes the time after Barclays reportedly learned about emails from Staley referring to Epstein as “family.”
Staley’s Past Relationship with Epstein
Staley’s relationship with Epstein, which reportedly lasted from 2005 to 2015, has been well-documented. Emails revealed during court proceedings show frequent meetings between the two while Staley worked at JPMorgan. This relationship has already resulted in Staley being banned from holding senior financial positions in the UK.
The Stakes
The lawsuit highlights the potential consequences of concealing connections to controversial figures, particularly for publicly traded companies. The outcome of this case could have significant implications for Barclays and Staley, as well as setting a precedent for future cases involving similar allegations.