Morgan Stanley, Barclays, DRW Securities Prevail in VIX Manipulation Lawsuit Dismissal

In a notable legal outcome, Morgan Stanley, Barclays Capital, and DRW Securities LLC have successfully had a lawsuit against them dismissed. This lawsuit, initiated in 2018, alleged manipulation of the volatility index. U.S. District Judge ruled that the claims from investment funds Two Roads Shared Trust and LJM Partners Ltd. were not substantiated and were also time-barred.

The investment funds had accused these financial institutions of incurring losses due to allegedly manipulated volatility index calculations attributed to Cboe Global Markets. However, the court found insufficient evidence to back these claims.

Despite this legal win, Morgan Stanley’s stock performance has taken a hit this year, with shares declining by 5.4%, placing the company at a Zacks Rank of #3 (Hold).

In a related context, Wells Fargo & Company, led by CEO Charlie Scharf, has also succeeded in getting a lawsuit dismissed. This case was focused on alleged fraudulent diversity hiring practices. In contrast, other companies like Boston Beer Company and NVIDIA have experienced significant stock growth recently.

These legal developments highlight the crucial role courts play in influencing the financial markets and corporate governance landscape. They also reflect the continual challenges faced by companies as they navigate complex legal matters while aiming to enhance shareholder value.

This article was generated with the support of AI and reviewed by an editor.