LONDON, Oct. 1 (Reuters) – A Florida-based silver miner has filed a lawsuit for damages against JPMorgan, accusing the bank of manipulating the silver market to push prices down so low that the mine of the business had to close.
The lawsuit, filed Tuesday in U.S. District Court for the Southern District of Florida, says Hidalgo Mining Corp raised $ 10.35 million from investors to finance a silver mine in Mexico that began production around 2012 and stopped in 2014.
Silver prices averaged around $ 31 per ounce in 2012 and $ 19 per ounce in 2014.
JPMorgan declined to comment.
Hidalgo’s claim, seen by Reuters, uses as evidence information from an investigation by U.S. regulators that found that JPMorgan staff between 2008 and 2016 sent bogus buy and sell orders on metals and treasury bill markets to move prices in their favor.
Traders say this technique, known as spoofing, is a short-term trading tactic rather than a means of long-term price suppression.
JPMorgan agreed last year to pay more than $ 920 million to settle the investigation.
The bank also paid $ 15.7 million last week to settle a class action lawsuit brought by investors who said the manipulation caused them losses. Read more
Reporting by Peter Hobson
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