Barclays wins dismissal of U.S. shareholder lawsuit over Libor

* Shareholders fail to show were materially misled

* Barclays was first bank to settle US, European probe

By Jonathan Stempel

May 13 (Reuters) - Barclays Plc, the first bank tosettle with authorities over alleged manipulation of the Liborinterest rate, on Monday won the dismissal of a U.S. lawsuit byshareholders who claimed they lost money because of the Britishbank's activity.

U.S. District Judge Shira Scheindlin in Manhattan saidinvestors who owned Barclays' American depositary shares did notshow that Barclays and other defendants, including former ChiefExecutives John Varley and Bob Diamond, misled them about Liboror took too long to reveal potential liabilities.

She also said the investors failed to show that allegedLibor manipulation between August 2007 and January 2009 causedthem to lose money through June 2012, when Barclays reached a$453 million settlement with U.S. and European regulators.

"The notion that the market would fail to digest three yearsof non-fraudulent submission rates and other more detailedfinancial information, and would instead leave intact artificialinflation as a result of fraudulent submission rates during thefinancial crisis is implausible," Scheindlin wrote.

The lawsuit had sought class-action status, and been broughton behalf of ADS purchasers between July 2007 and June 2012.

It was led by the Carpenters Pension Trust Fund of St. Louisin Missouri, and the St. Clair Shores Police & Fire RetirementSystem in Michigan.

Scheindlin said the plaintiffs will not get a chance toamend their lawsuit, having failed to address previouslyidentified deficiencies in their second amended complaint.

David Rosenfeld, a lawyer for the plaintiffs, did notimmediately respond to a request for comment. Barclays spokesmanBrandon Ashcraft declined to comment.

Libor, or the London interbank offered rate, underpinshundreds of trillions of dollars of transactions, and is used toset interest rates on credit cards, student loans and mortgages.

U.S. and European regulators are still probing whether banksartificially depressed Libor during the financial crisis toappear healthier.

UBS AG agreed in December to pay $1.5 billion andRoyal Bank of Scotland Group Plc agreed in February topay $612 million to settle with authorities over Libor.

The Barclays lawsuit is separate from U.S. litigation bybondholders and others over Libor manipulation against 16 banks,including Bank of America Corp, Citigroup Inc,Credit Suisse Group AG, Deutsche Bank AG,HSBC Holdings Plc and JPMorgan Chase & Co.

Scheindlin's colleague Naomi Reice Buchwald in Marchdismissed what she called a "substantial portion" of that case,including federal antitrust claims.

The case is Gusinsky et al v. Barclays Plc et al, U.S.District Court, Southern District of New York, No. 12-05329.