QS Holdco’s lawsuit against major prime brokers and EquiLend was dismissed by New York Federal Judge Richard Sullivan on Tuesday. The lawsuit alleged that the defendants conspired to crush the business of AQS, also known as Quadriserv, which was subsequently bought by EquiLend.
The judge made the ruling based on the fact that QS Holdco was not the right party to make the complaint. When EquiLend acquired all of AQS’s assets in 2015, EquiLend became the party that would be responsible for taking legal action.
This ruling does not impact the ongoing lawsuit by a number of pension plans against the same group of prime brokers and EquiLend.
For more on the QS Holdco lawsuit, see https://finadium.com/bloomberg-banks-seeks-dismissal-of-stone-age-stock-lending-lawsuit/
For more on the pension lawsuit, see https://finadium.com/six-us-banks-sued-securities-lending-antitrust-lawsuit-alleges-collusion/