The court dismissed all claims involving alleged manipulation of Mexican government bond prices

In April 2017, a purported class action complaint was filed alleging that 10 defendant banks, including Davis Polk client Banco Bilbao Vizcaya Argentaria, S.A. and affiliates (BBVA), and other defendants conspired to manipulate the prices of Mexican government bonds in auctions and post-auction sales, and to manipulate bid-ask spreads in the secondary market for those bonds. The complaint relied on alleged statistical analysis of prices and spreads in the Mexican government bond market and reports of government investigations by Mexico’s antitrust and securities regulator.

Defendants, including BBVA, moved to dismiss the claims, among other reasons because the complaint did not plausibly allege that they had conspired to manipulate Mexican government bond prices. 

On September 30, 2019, Judge J. Paul Oetken of the Southern District of New York granted a motion to dismiss the plaintiffs’ claim in full. Judge Oetken agreed with defendants’ argument, holding that plaintiffs “have not alleged anything that would plausibly suggest that the particular defendants named in this suit were part of that conspiracy.” The plaintiffs filed an amended complaint, which defendants again moved to dismiss, and on December 1, 2020, Judge Oetken granted defendants’ motion to dismiss in full for lack of personal jurisdiction.

Plaintiffs moved for reconsideration of that decision based on the Supreme Court’s decision in Ford Motor Co. v. Montana Eighth Judicial District Court, 141 S. Ct. 1017 (2012), and on March 30, 2022, Judge Oetken denied the motion for reconsideration and reaffirmed his dismissal of plaintiffs’ suit.

The Davis Polk team included partners Arthur J. Burke and Paul S. Mishkin.