Silver lawsuitProposed $1B class action alleges Scotiabank and other banks rigged silver price By Barbara Shecter Investors launched a class action in Ontario that alleges banks conspired to manipulate silver prices A trio of Canadian law firms is seeking to certify a second class action lawsuit involving alleged manipulation of precious metals pricing over 15 years by large financial institutions including Bank of Nova Scotia. Lawyers at Sotos LLP, Koskie Minsky LLP and Camp Fiorante Matthews Mogerman, who filed a lawsuit in Ontario Superior Court of Justice in December alleging manipulation of the gold price1, filed a similar action last week alleging that Scotia and the other banks "conspired to manipulate prices in the silver market under the guise of the benchmark fixing process, known as the London Silver Fixing." At this point, neither Canadian lawsuit, each of which is seeking up to $1 billion in damages or compensation on behalf of investors, has been certified to move forward. The Canadian lawsuits mirror actions filed earlier in the United States. The U.S. suits, which name Scotia and a handful of international banks including HSBC Holdings PLC and UBS AG, allege manipulation of key benchmarks based on the prices of gold and silver. There was a development in one of those cases last week. According to media reports, Deutsche Bank AG is attempting to settle U.S. litigation in exchange for a monetary payment and potential aid to the plaintiffs in pursuing other claims. A spokesperson at Bank of Nova Scotia declined to comment on the development south of the border, citing the fact that the cases against Scotia remain before the courts. The U.S. and Canadian cases are distinct from one another. The most recent Canadian lawsuit was filed on behalf of anyone in Canada who transacted in a silver market instrument, either directly or indirectly, between Jan. 1, 1999 and Aug. 14, 2014. The filing says this includes investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a silver market instrument. Among the claims in the recent filing is an allegation that the defendants, including Bank of Nova Scotia, "manipulated the bid-ask spreads of silver market instruments throughout the trading day in order to enhance their profits at the expense of the class." As a result, the lawsuit claims, the alleged conduct affected both investors who bought and sold physical gold, and those who bought and sold silver-related financial instruments. According to the firms behind the lawsuits filed in Canada, law enforcement and regulatory authorities in the United States, Switzerland, and the United Kingdom, are investigating conduct in the precious metal market. Financial Post bshecter@nationalpost.com twitter.com/batpost