Case Spotlight: Euribor Rate Manipulation
By Jenn Rothenberg, VP of Marketing, Financial Recovery Technologies
| Case: | Sullivan et al. v. Barclays plc et al. |
|---|---|
| Case Number: | No. 13-cv-2811 (PKC) (S.D.N.Y.) |
| Settlement Amount: | $309 million (to date) |
| Court: | U.S. District Court – Southern District of New York |
| Claims: | Federal antitrust violations; Commodity Exchange Act; Racketeering Influenced and Corrupt Organizations Act; unjust enrichment |
| Relevant Period: | June 1, 2005 – March 31, 2011 |
| Covered Instruments: | “…any and all interest rate swaps, forward rate agreements, futures, options, structured products, and any other instrument or transaction related in any way to Euribor…” |
CASE BACKGROUND
This case alleges that during the Class Period, the Defendants manipulated the Euribor rate for their own benefit. The Defendants are several financial institutions on the panel of banks that submit interest rates and the inter-dealer broker entities that allegedly coordinated and directed the submission of false reports. Plaintiffs claim that the Defendants conspired and artificially directed the prices and payments of Euribor Products to financially benefit their derivatives positions. Among other things, the Defendants are alleged to have engaged in “pushing cash,” transmitted false bids and offers, used derivative traders as submitters, and rigged bids and offers for Euribor Products.
Barclays, HSBC, and Deutsche Bank have denied Plaintiffs’ allegations. However, Defendants’ conduct has resulted in over $2.5 billion in fines and penalties to DOJ, CFTC, and FSA to resolve criminal and civil charges against the Defendants.
WHAT DEFENDANTS HAVE SETTLED?
The Court has separately and preliminarily approved settlements with the following defendants:
| Settling Defendants | Settling Amount |
|---|---|
| Barclays | $94 million |
| HSBC | $45 million |
| Deutsche Bank | $170 million |
DETERMINING ELIGIBILITY
Potential claimants must have “purchased, sold, held, traded, or otherwise had any interest in any Euribor Products from June 1, 2005 through and including March 31, 2011, who were either domiciled in the United States or its territories or, if domiciled outside the United States or its territories, transacted Euribor Products in the United States or its territories from June 1, 2005 through and including March 31, 2011.”
| FRT Antitrust clients have received our Euribor Querying Memo which includes: • Eligible transactions for the specific case • Guidelines for identifying relevant trades including search terms, mandatory fields needed for filing and additional tips on sourcing the data • Comprehensive FAQ of all relevant and known information for assessing eligibility, potential for recovery, potential recovery amount, and ways in which FRT can facilitate in the recovery process |
COVERED INSTRUMENTS
The Settlement relates to the Euribor rate, which is a daily reference rate that is based on the average interest rates at which European banks lend unsecured funding in the euro interbank market. These include but are not limited to:
- New York Stock Exchange (“NYSE”) London International Financial Futures and Options Exchange (“LIFFE”) Euribor futures contracts and options
- Chicago Mercantile Exchange (“CME”) Euro currency futures contracts and options
- Euro currency forward agreements
- Euribor-based swaps
- Euribor-based forward rate agreements
- Euribor-based Interest Rate Swaps
- Euribor-based Forward Rate Agreements
- Euribor-based Futures
- Euribor-based Options
- And/or any other financial instruments that reference Euribor
NEXT STEPS
To recover from the settlement fund, you must submit a Claim Form by August 1, 2018. At your request, FRT can help you prepare the Claim Form and submit it on your behalf.
Unlike the Forex Antitrust case, investors do not have a constructed trade option. Claim forms are blank and class members must submit their full trade details by the deadline. Read our blog to learn how Euribor claims filing differs from Forex.
LEARN MORE
For more information on this case, or to learn more about the FRT Antitrust program, please contact us at learnmore@frtservices.com.
- Preliminary Alert: June 14, 2017
- Update Alert: April 17, 2018
- Full Alert: June 12, 2018
About FRT
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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.
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