Barclays facing court over rate scandal claims

Bosses at companies which run care homes sued after claiming Barclays sold financial products without warning the inter-bank lending rate on which they were based was likely to have been “undermined” by manipulation.

Barclays, which the court heard was fined for for “misconduct and wrongdoing” in relation to manipulation of the London Inter-Bank Offer Rate (Libor), disputes the allegations and tried to block damages claims at a High Court hearing in London.

But Mr Justice Flaux yesterday ruled the companies’ claims could be aired at a civil trial – likely to take place in late 2013.

A spokesman for one of the firms, Wolverhampton-based Guardian Care Homes said: “Our claim is not just based on mis-selling but on the effect of senior management at Barclays instructing the aggressive selling of (financial products) while attempting to rig Libor.”