Investors sought to take action against the bank and several other underwriters - including Bank of America (BofA), Morgan Stanley and Goldman Sachs - over four depositary share offerings of $5.45 billion made between 2006 and 2008.
Manhattan district judge Paul Crotty said yesterday (January 5th 2011) that Barclays had provided "substantial risk disclosures" and found there was a lack of evidence that the firm had artificially inflated the valuation of its subprime assets.
The investors' lawyer David Rosenfeld has so far declined to comment. Barclays declared following Mr Crotty's announcement that it was pleased by the ruling.
Last month, MBIA won a court case against BofA as part of its ongoing battle to prove the bank misrepresented mortgage bonds valued at around $20 billion.
By Tony Aynsley