London (Business Emerge), October 7: Elliott Associates lost its appeal on Monday against a previous court ruling that dismissed their lawsuit targeting the London Metal Exchange (LME). The hedge fund had taken legal action after LME annulled billions of dollars in nickel transactions during a period of extreme market volatility.
The LME cancelled $12 billion worth of nickel trades in March 2022 when prices surged to unprecedented levels, exceeding $100,000 per metric ton in mere hours of frantic activity. Elliott Associates subsequently sued the LME, but London’s High Court dismissed their case in November 2023. The Court of Appeal rejected Elliott’s attempt to overturn this decision.
Judge Stephen Males ruled that the sharp price movement on March 8, 2022, was an “extraordinary event,” emphasizing that the LME’s actions were lawful under the circumstances. He further stated that allowing the trades from March 8 to stand could have posed a significant risk of a catastrophic collapse, referred to as a “death spiral,” in the global metals market.