PONTIAC POLICE AND FIRE RET. v. BNP PARIBAS SEC.

No. 22-943 August Term, 2023.

92 F.4th 381 (2024)

CITY OF PONTIAC POLICE AND FIRE RETIREMENT SYSTEM, on behalf of itself and on behalf of all others similarly situated, Cleveland Bakers and Teamsters Pension Fund, on behalf of themselves and all others similarly situated, Cleveland Bakers and Teamsters Health and Welfare Fund, on behalf of themselves and all others similarly situated, Erie County Employees' Retirement System, individually and on behalf of all others similarly situated, IBEW Local 640 Arizona Chapter NECA Pension Trust Fund, on behalf of itself and all others similarly situated, MASTERINVEST Kapitalanlage GmbH, Oklahoma Firefighters Pension and Retirement System, individually and on behalf of all others similarly situated, United Food and Commercial Workers Union and Participating Food Industry Employers Tri-state Pension Fund, Rock Capital Markets, LLC, on behalf of itself and all others similarly situated, Oklahoma Police Pension and Retirement System, Boston Retirement System, The Government Employees' Retirement System of the Government of the Virgin Islands, Alaska Electrical Pension Fund, on behalf of itself and all others similarly situated, Bank of Jerusalem, Ltd., on behalf of itself and others similarly situated, City of Atlanta Firefighters' Pension Fund, Employees Retirement System of Rhode Island, individually and on behalf of all others similarly situated, UNIQA Capital Markets GmbH, on behalf of UNIQA DOLLAR BOND individually and all others similarly situated, Torus Capital LLC, UFCW Local 1500 Pension Fund, Plaintiffs-Appellants, Arkansas Teacher Retirement System, Beaver County Employees' Retirement Fund, individually and on behalf of all others similarly situated, Marc Federighi, individually and on behalf of all those similarly situated, Inter-Local Pension Fund of the Graphic Communications Conference of the International Brotherhood of Teamsters, Lackawanna County Employees' Retirement Fund, Rutgers Enhanced Insurance Company, State-Boston Retirement System, on behalf of itself, United International Insurance Company, United Food and Commercial Workers Local 1776 & Participating Employers Pension Fund, individually and on behalf of all others similarly situated, Jonathan Richard Williamson, Policemen's Annuity & Benefit Fund of Chicago, City of Omaha Police and Fire Retirement System, Thomas E. Kalaway, Michael J. Smith, individually and on behalf of those similarly situated, CNB Bancorp, Inc., The Police Retirement System of St Louis, M & N Trading, Marina Fouts, on behalf of herself and all others similarly situated, Michael St. John, Laborers Local 100 and 397 Health and Welfare Fund, on behalf of itself and all others similarly situated, Breakwater Trading LLC, Rogers Varner, Jr., BWT Professional Trading, LLC, Air Conditioning and Refrigeration Industry Retirement Trust, on behalf of itself, and, in a representative capacity, on behalf of all those similarly situated, Endeavor Trading, LLC, American Federation of Teachers, individually and on behalf of all others similarly situated, Twin City Iron Workers Health & Welfare Fund, on behalf of itself and all others similarly situated, Jane Franklin, on behalf of herself and all others similarly situated, Twin City Iron Workers Pension Fund, on behalf of itself and all others similarly situated, Robert L. Teel, Richard Corbett, The New Jersey Laborers Statewide Funds, Brian Fisher, City of Providence, Central Laborers' Pension Fund, Plaintiffs, v. BNP PARIBAS SECURITIES CORP., Barclays Capital Inc., Citigroup Global Market Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities Holdings LLC, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., UBS Securities LLC, Tradeweb Markets LLC, Dealerweb Inc., Tradeweb IDB Markets, Inc., JP Morgan Chase Bank, N.A., J.P. Morgan Clearing Corp., Bank of America Corp., Michael St. John, Barclays Bank, PLC, Defendants-Appellees, BMO Capital Markets Corp., CIBC World Markets Corp., Cantor Fitzgerald & Co., Commerz Markets LLC, Countrywide Securities Corp., Daiwa Capital Markets America Inc., Deutsche Bank Securities Inc., Jeffries LLC, Merrill Lynch Government Securities Inc., Mizuho Securities USA Inc., Nomura Securities International Inc., RBC Capital Markets, LLC, SG Americas Securities LLC, TD Securities (USA) LLC, 3RED TRADING LLC, Citigroup, Inc., Credit Suisse Group AG, The Goldman Sachs Group, Inc., Goldman Sachs Execution & Clearing L.P., JP Morgan Chase & Co., Morgan Stanley, UBS AG, Credit Suisse International, Bank of Nova Scotia, New York Agency, Bank of America, N.A., Defendants.

United States Court of Appeals, Second Circuit.

Decided: February 1, 2024.


Attorney(s) appearing for the Case

Michael B. Eisenkraft , Cohen Milstein Sellers & Toll PLLC, New York, NY ( David O. Fisher , Cohen Milstein Sellers & Toll PLLC, New York, NY; Carol V. Gilden , Cohen Milstein Sellers & Toll PLLC, Chicago, IL; Michael P. Canty , Thomas G. Hoffman, Jr. , Labaton Sucharow LLP, New York, NY; Daniel L. Brockett , Thomas Lepri , Steig D. Olson , Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY; Jeremy Andersen , Quinn Emanuel Urquhart & Sullivan, LLP, Los Angeles, CA, on the brief), for Plaintiffs-Appellants.

Richard C. Pepperman II , Sullivan & Cromwell LLP, New York, NY ( Jonathan S. Carter , Sullivan & Cromwell LLP, New York, NY; Robert Y. Sperling , Staci Yablon , Paul, Weiss, Rifkind, Wharton & Garrison, LLP, New York, NY, on the brief), for Defendant-Appellee Goldman Sachs & Co. LLC.

Jon R. Roellke , Morgan, Lewis & Bockius LLP, Washington, DC ( Stacey Anne Mahoney , Morgan, Lewis & Bockius LLP, New York, NY, on the brief), for Defendants-Appellees Tradeweb Markets LLC, Tradeweb IDB Markets, Inc. and Dealerweb Inc.

Richard A. Rosen , Brad S. Karp , Kenneth A. Gallo , Susanna M. Buergel , Melina M. Meneguin Layerenza , Paul, Weiss, Rifkind, Wharton & Garrison, LLP, New York, NY, for Defendant-Appellee Morgan Stanley & Co., LLC.

Robert D. Wick , Covington & Burling LLP, Washington, DC ( Henry B. Liu , Covington & Burling LLP, Washington, DC; S. Conrad Scott , Covington & Burling LLP, New York, NY, on the brief), for Defendants-Appellees J.P. Morgan Securities LLC, J.P. Morgan Securities Holdings LLC, JP Morgan Chase Bank, N.A. and J.P. Morgan Clearing Corp.

Adam S. Hakki , Agnès Dunogué , Benjamin Klebanoff , Shearman & Sterling LLP, New York, NY, for Defendant-Appellee BNP Paribas Securities Corp.

Matthew A. Schwartz , Kathleen S. McArthur , Sullivan & Cromwell LLP, New York, NY, for Defendant-Appellee Barclays Capital Inc.

Jay B. Kasner , Karen M. Lent , Skadden, Arps, Slate, Meagher & Flom LLP, New York, NY, for Defendant-Appellee Citigroup Global Markets Inc.

John E. Schmidtlein , Williams & Connolly LLP, Washington, DC, for Defendants-Appellees Bank of America Corp. and Merrill Lynch, Pierce, Fenner & Smith Inc.

Paul S. Mishkin , Davis Polk & Wardwell LLP, New York, NY, for Defendant-Appellee RBS Securities Inc.

Eric J. Stock , Gabrielle Levin , Gibson, Dunn & Crutcher LLP, New York, NY; Melanie L. Katsur , Gibson, Dunn & Crutcher LLP, Washington, DC, for Defendant-Appellee UBS Securities LLC.

David G. Januszewski , Elai Katz , Thorn Rosenthal , Herbert S. Washer , Cahill Gordon & Reindel LLP, New York, NY, for Defendant-Appellee Credit Suisse Securities (USA) LLC.

Before: Jacobs, Wesley and Robinson, Circuit Judges.


More than twenty banks, known as primary dealers, are major players in the multi-trillion-dollar market for United States Treasuries, the debt securities that fund the federal government. Treasuries are issued in auctions held at scheduled intervals, and are traded in a secondary market.

Plaintiffs-Appellants...

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