The allegations include misuse of confidential information and other illegal activities including breach of both contract and duty of care, breach of fiduciary and statutory duty and negligent misstatement.
It’s not ideal timing for the suit - which has been developing for some time - to surface while the London Metal Exchange and the global metals community gear up for the annual LME Week in London.
No company wants to be associated with any of the claims although they are to date unproven allegations only. Barclays - which has since pulled off the LME floor and exited that business - has denied any misuse of Red Kite’s confidential information, with the period in question spanning December 2010 through December 2013.
Nor are these assertions that the LME will be thrilled to be connected with, particularly in the current regulatory environment and while its members struggle to prepare their unique trading...