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US Supreme Court Lets Muni Bond Price-Fixing Class Action Proceed Against Major Banks

BY MT Newswires | MUNICIPAL | 11:03 AM EDT

11:03 AM EDT, 04/20/2026 (MT Newswires) -- The US Supreme Court refused to block a class-action suit accusing eight major banks of fixing prices on state and municipal bonds, news outlets reported Monday.

The court rejected the banks' appeal and upheld an earlier court decision to certify the class action filed by cities including Baltimore, Philadelphia, and San Diego, according to the reports. The banks involved in the lawsuit are Bank of America (BAC), (BAC), JPMorgan Chase (JPM) , Citigroup (C/PN) (C), Morgan Stanley (MS), Goldman Sachs Group (GS) , Barclays (BCS) , Royal Bank of Canada (RY) , and Wells Fargo (WFC) .

The cities claimed that the banks colluded from 2008 to 2016 to raise rates on variable-rate demand bonds, the reports said. The suit is seeking $12 billion in damages, while Bloomberg Intelligence senior litigation analysts said the case could settle for about $770 million, a Bloomberg News report said.

The eight banks did not immediately respond to requests for comment from MT Newswires.

Price: 53.37, Change: -0.54, Percent Change: -1.01

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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