Six Mexican banks have agreed to pay a combined $86.4 million to resolve a U.S. class-action lawsuit alleging price-fixing in the market for Mexican government bonds.
The lawsuit, filed in 2018, accused the banks—including Banorte, BBVA Mexico, Santander Mexico and others—of conspiring to manipulate prices in the secondary market for Mexican sovereign debt. Plaintiffs alleged the banks coordinated bid-ask spreads and trading strategies to inflate profits at the expense of investors.
The settlement, disclosed in a U.S. court filing on Friday, covers claims dating back to 2011 and avoids a trial that could have lasted years. The agreement does not include an admission of wrongdoing by the banks. Terms were negotiated with input from a court-appointed mediator.
The Mexican banks named in the suit are major participants in the local bond market, which is a key source of financing for the government. The secondary market for Mexican sovereign bonds is dominated by a small group of large financial institutions, raising concerns about transparency and fair pricing.
The settlement amount will be distributed to eligible investors who purchased or traded Mexican government bonds during the specified period. The case was overseen by the U.S. District Court for the Southern District of New York.
A spokesperson for Banorte declined to comment. Representatives for BBVA Mexico and Santander Mexico did not immediately respond to requests for comment.
