CHARLESTON – West Virginia Attorney General Patrick Morrisey has announced his office secured a settlement with Bayerische Landesbank to resolve an antitrust case and benefit local agencies across the state.
The settlement, announced last week, resolved allegations that BLB engaged in unscrupulous business practices with several West Virginia entities. The lawsuit alleged BLB participated in a rigged bid system, which manipulated rates associated with bonds in hopes of getting a favorable percentage.
“This settlement is a win for the local agencies and West Virginia,” Morrisey said in a statement.
BLB was among more than 20 banks and financial companies sued by the Attorney General’s Office for suspected violations of the Sherman Antitrust Act and the state Antitrust Act.
The case involved allegations of rigged bids, fixed prices and manipulated markets for municipal derivatives, an investment vehicle tax-exempt entities use to reinvest proceeds of bond sales for a higher rate of return as opposed to a traditional savings account.
The objective was to enrich the financial institution and/or broker at the expense of the issuer – and ultimately taxpayers – depriving the issuer of a competitive, transparent marketplace.
BLB denied any allegations of wrongdoing as part of the lawsuit and the settlement.
Entities receiving a portion of the settlement include the Cabell County Board of Education, Wood County Board of Education, cities of Charleston and Martinsburg, Fairmont State University, the West Virginia University Board of Governors and the state’s Water Development Authority.
The Attorney General’s Office filed the lawsuit in Point Pleasant before it was transferred as part of a multi-jurisdictional, federal case in New York.