Barclays Settles $19.5 Million Shareholder Lawsuit

Barclays has agreed to pay $19.5 million to settle a lawsuit from shareholders who accused the bank of securities fraud for selling $17.7 billion more debt than allowed by U.S. regulators. The preliminary settlement, filed in Manhattan federal court, requires approval from U.S. District Judge Katherine Polk Failla. Shareholders claimed they lost money due to Barclays’ assurances about compliance with regulatory standards, with the bank admitting in March 2022 to overselling $15.2 billion in structured notes, later revised to $17.7 billion. Barclays characterized the overissuance as an 'entirely avoidable' mistake but continues to deny wrongdoing. The lawsuit, covering investors from February 2021 to February 2023, has highlighted significant internal control failures, as Failla noted that the bank's tracking system for debt sales 'did not exist'. This case underscores the importance of regulatory compliance in the banking sector, potentially prompting increased scrutiny across financial institutions.