Barclays Faces Class Action Lawsuit Over Epstein Ties

Barclays, a prominent British multinational bank, and its former CEO, Jes Staley, are facing a significant legal challenge. A class action lawsuit has been filed against them, alleging that they misled investors about their ties to the disgraced financier Jeffrey Epstein. The lawsuit, led by pension funds in New York and St. Louis, represents holders of Barclays’ American Depositary Receipts (BCS), which are securities that allow investors in the US to gain exposure to the bank’s shares that natively trade on the London Stock Exchange.

According to the lawsuit, Barclays and Staley defrauded investors by either lying or downplaying their relationship with Epstein. The alleged motive behind this deception was to protect Barclays’ reputation and bolster its stock price. US District Judge Maame Ewusi-Mensah Frimpong has ruled that the plaintiffs have plausibly alleged that the defendants intended to mislead them about their relationship with Epstein.

The fraud is alleged to have occurred from July 22nd, 2019, to October 12th, 2023, a period during which Barclays was aware of an email cache belonging to Staley that categorized Epstein as “family.” This revelation is particularly damning given that Staley, as an ambitious new executive of JPMorgan’s private banking branch, developed a professional and personal relationship with Epstein that lasted from 2005 to 2015, even after Epstein was jailed and placed on a sex offender registry.

An email trove exposed in court showed that while working at JPMorgan, Staley and Epstein met regularly. This close relationship has had significant repercussions for Staley, who has since been banned from top financial jobs in the UK by Britain’s Financial Conduct Authority (FCA). The lawsuit highlights the potential consequences of such high-profile associations and the importance of transparency in financial dealings.

This legal battle underscores the complexities and risks associated with financial institutions and their executives' personal and professional relationships. The allegations against Barclays and Staley serve as a reminder of the scrutiny that financial entities face and the potential legal ramifications of misconduct. The outcome of this lawsuit could set a precedent for how financial institutions handle disclosures and relationships with controversial figures, emphasizing the need for honesty and transparency in the industry.