By Jonathan Stempel
NEW YORK, Nov 25 (Reuters) - Goldman Sachs Group Inc,Germany's BASF SE and two other big platinum andpalladium dealers have been sued in the United States in whatthe plaintiff's law firm called the first nationwide classaction over alleged price-fixing of the metals.
In a complaint filed on Tuesday in the U.S. District Courtin Manhattan, units of Goldman, BASF, HSBC Holdings Plc and South Africa's Standard Bank Group Ltd were accusedof having conspired since 2007 to rig the twice-daily platinumand palladium "fixings" and the prices of futures and optionsbased on those fixings.
The plaintiff, Modern Settings LLC, a Florida-based companythat said it bought the metals, claimed purchasers lost millionsof dollars because the defendants illegally shared customerdata, used that information to engage in "front-running" ofexpected price moves, and manufactured phantom "spoof" orders.
Platinum and palladium are used in catalytic converters tocurb vehicle emissions, and are also used in dentistry andjewelry.
On Oct. 16, the London Metal Exchange said it will on Dec. 1take charge of platinum and palladium price fixing, and use anew electronic platform.
The Hong Kong Exchanges and Clearing Ltd unit saidthe platform would replace a benchmark system established in1989, and run by Goldman, BASF, HSBC and Standard.
The complaint said such changes "have come too late" forModern Settings and other prospective class members. Thecomplaint seeks unspecified damages for the defendants' allegedviolations of U.S. antitrust and commodities laws.
Regulators around the world have tightened scrutiny ofpricing benchmarks in recent years after uncovering evidence ofrigging in currencies and the London Interbank Offered Rate.
The more stringent regulation has spawned new price settingplatforms for gold, silver, platinum and palladium. Metalspurchasers have filed similar lawsuits this year accusing banksof gold and silver price-fixing.
Goldman spokesman Michael DuVally and HSBC spokeswomanJuanita Gutierrez declined to comment. BASF and Standard Bankdid not immediately respond to requests for comment after markethours in their home countries.
The law firm Labaton Sucharow represents Modern Settings.
The case is Modern Settings LLC v. BASF Metals Ltd et al,U.S. District Court, Southern District of New York, No.14-09391. (Reporting by Jonathan Stempel in New York. Editing by AndreGrenon)