Barclays, Volatility-Linked Noteholders Row Over Reverse Split

Barclays PLC‘s reverse split of volatility-linked exchange traded notes wasn’t a sale of securities, the banking giant told an appellate court while asking it to snuff out noteholders’ case.

Even if the US Court of Appeals for the Second Circuit finds that was a sale under the 1933 Securities Act, investors can’t plead damages, as they didn’t pay anything and gave up nothing in that 2021 reverse split of these types of exchange traded notes called VXX ETNs, Barclays said in a brief Wednesday.

The US District Court for the Southern District of New York correctly tossed noteholders’ proposed ...