Barclays PLC is currently facing two class action lawsuits following revelations about former CEO James Staley's relationship with the late financier Jeffrey Epstein. Shareholders have been called to join the legal actions by Robbins LLP and The Gross Law Firm, with a lead plaintiff filing deadline set for January 2, 2024.
The lawsuits stem from a series of events that significantly impacted Barclays' stock price and reputation. Notably, on November 1, 2021, Jes Staley's departure from the bank amidst an FCA and PRA investigation into his connections with Epstein led to a 2.2% drop in share value. Further reports on November 12, 2021, detailing Staley's extensive email communications with Epstein caused an additional 0.5% dip in the stock's value.
The situation escalated on March 8, 2023, when JPMorgan Chase (NYSE:JPM) Bank levied allegations against Staley regarding his involvement with Epstein's criminal activities, resulting in a further 3.4% decrease in Barclays' shares. The financial blow to the bank continued when the British Financial Conduct Authority fined Staley £1.8 million (GBP1 = USD1.2294) on October 12, 2023, and banned him from holding senior management roles in the finance industry due to misleading statements about his association with Epstein. This news prompted another 5% fall in the company's stock price.
Shareholders allege that Barclays issued materially false responses to the FCA's inquiries about Staley's ties with Epstein. Despite possessing information to the contrary, the bank did not correct its statements or take adequate action as evidence contradicting their position came to light.
The legal actions bring further claims against Staley, including potential sexual assault on a victim trafficked by Epstein. These allegations pose significant reputational and financial risks for Barclays.
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