A four-year-old class action lawsuit surrounding futures will continue to haunt Pimco. On Tuesday a panel of the U.S. Court of Appeals for the Seventh Circuit refused to toss out the class action certification of Kohen v. Pimco, in which Josef Kohen and others claim that Pimco cornered the 10-year U.S. Treasury note futures market four years ago.

In a 15-page opinion, renowned jurist Richard Posner (writing for himself and two of his colleagues) writes that "to deny class certification now ... would be premature."

"Pimco argues that before certifying a class the district judge was required to determine which class members had suffered damages. But putting the cart before the horse in that way would vitiate the economies of class action procedure: in effect the trial would precede the certification," Posner ruled. "Pimco's attempt to derail this suit at the outset is ill timed, ill conceived, and must fail." 

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