Contant v. Bank of Am. Corp.

385 F. Supp. 3d 284
CourtDistrict Court, S.D. Illinois
DecidedMay 17, 2019
Docket17 Civ. 3139 (LGS)
StatusPublished
Cited by13 cases

This text of 385 F. Supp. 3d 284 (Contant v. Bank of Am. Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contant v. Bank of Am. Corp., 385 F. Supp. 3d 284 (S.D. Ill. 2019).

Opinion

LORNA G. SCHOFIELD, District Judge:

*289This case concerns an alleged conspiracy among the world's largest banks to fix prices in the foreign exchange ("FX") market. Plaintiffs allege that they purchased FX instruments from retail FX dealers ("Retail Dealers") at prices that were artificially inflated on account of Defendants' manipulation of the FX market. Plaintiffs' Second Consolidated Class Action Complaint (the "Complaint") alleges violations of state antitrust and consumer protection laws. Defendants Barclays Bank PLC ("Barclays"), BNP Paribas Group ("BNP Paribas"), HSBC Bank plc ("HSBC"), MUFG Bank, Ltd. ("MUFG"), The Royal Bank of Scotland plc ("RBS"), Société Générale ("SocGen"), Standard Chartered Bank ("Standard Chartered"), UBS AG and UBS Group AG (collectively, the "Foreign Defendants")1 move to dismiss the Complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). For the reasons discussed herein, the motion is granted as to MUFG, RBS, SocGen and UBS Group AG, and is denied as to the other Foreign Defendants.

I. BACKGROUND

Familiarity with the underlying facts and procedural history is assumed. See Contant v. Bank of Am. Corp. , No. 17 Civ. 3139, 2018 WL 1353290 (S.D.N.Y. Mar. 15, 2018) ; Contant v. Bank of Am. Corp. , No. 17 Civ. 3139, 2018 WL 5292126 (S.D.N.Y. Oct. 25, 2018). Except as otherwise stated, the following alleged facts are taken from the Complaint and the parties' submissions on this motion. See MacDermid, Inc. v. Deiter , 702 F.3d 725, 727 (2d Cir. 2012) ; accord GlaxoSmithKline LLC v. Laclede, Inc. , No. 18 Civ. 4945, 2019 WL 293329, at *3 (S.D.N.Y. Jan. 23, 2019). The allegations in the Complaint are taken as true to the extent they are uncontroverted by the Foreign Defendants' affidavits. See MacDermid , 702 F.3d at 727 ; accord GlaxoSmithKline , 2019 WL 293329, at *3.

*290From approximately 2007 to 2013, Defendants conspired with each other to fix prices in the FX market. Defendants exchanged confidential customer information and coordinated their trading strategies in order to manipulate FX benchmark rates. As a result of the conspiracy, the Retail Dealers purchased FX instruments at artificially inflated prices, and passed on the anticompetitive overcharges to retail customers, including Plaintiffs. All of the Foreign Defendants are incorporated and have their principal places of business overseas. Plaintiffs are ten individuals and one entity domiciled in, and engaged in FX transactions in, various states of the United States, including New York.

II. STANDARD

On a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction, "the plaintiff bears the burden of establishing personal jurisdiction over the defendant." MacDermid , 702 F.3d at 727 ; accord GlaxoSmithKline , 2019 WL 293329, at *3. "[W]hen a motion to dismiss for lack of jurisdiction is decided on the basis of affidavits and other written materials, the plaintiff need only make a prima facie showing" of jurisdiction. MacDermid , 702 F.3d at 727 ; see also Charles Schwab Corp. v. Bank of Am. Corp. , 883 F.3d 68, 81 (2d Cir. 2018). "[T]he pleadings and affidavits [are to be construed] in the light most favorable to plaintiffs, resolving all doubts in their favor." Dorchester Fin. Sec., Inc. v. Banco BRJ, S.A. , 722 F.3d 81, 85 (2d Cir. 2013). "[A] prima facie showing suffices, notwithstanding any controverting presentation by the moving party , to defeat the motion." Id. at 86 (emphasis in original) (quoting Marine Midland Bank, N.A. v. Miller , 664 F.2d 899, 904 (2d Cir. 1981) ).

Courts will not, however, resolve "argumentative inferences in the plaintiff's favor" or "accept as true a legal conclusion couched as a factual allegation." In re Terrorist Attacks on Sept. 11, 2001 , 714 F.3d 659, 673 (2d Cir. 2013) (internal quotation marks omitted); accord E. Mishan & Sons, Inc. v. Smart & Eazy Corp. , No. 18 Civ. 3217, 2018 WL 6528496, at *3 (S.D.N.Y. Dec. 12, 2018). The allegations or evidence of activity constituting the basis of jurisdiction must be non-conclusory and fact-specific. See Jazini v. Nissan Motor Co. , 148 F.3d 181, 185 (2d Cir. 1998) ; accord Madison Capital Mkts., LLC v. Starneth Europe B.V. , No. 15 Civ. 7213, 2016 WL 4484251, at *3 (S.D.N.Y. Aug. 23, 2016). A plaintiff that initially establishes jurisdiction by a prima facie showing eventually must establish jurisdiction by a preponderance of the evidence, based on the presentation of evidence. See Dorchester , 722 F.3d at 85.

III. DISCUSSION

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385 F. Supp. 3d 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contant-v-bank-of-am-corp-ilsd-2019.