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Case Spotlight: USD LIBOR Eurodollar Futures

CaseUSD LIBOR Eurodollar Futures
Settlement Amount:$187m
Claims:Alleged manipulation of U.S. Dollar LIBOR and its impact on Eurodollar Futures Contracts and/or Options on Eurodollar Futures (“Eurodollar Futures”) that are linked to U.S. Dollar LIBOR
Relevant Period: January 1, 2003 - May 31, 2011
Covered Instruments:Eurodollar futures contracts and/or options on Eurodollar futures transacted on exchanges
Claim Deadline:December 1, 2020

In March 2020, the New York Federal Court entered an order to preliminarily approve a partial settlement of the class action lawsuit involving the alleged manipulation of the U.S. Dollar LIBOR rates, specifically as the tie to Eurodollar Futures against the Defendants in the amount of $187m. Those who transacted in Eurodollar Futures Contracts and/or Options on Eurodollar Futures during the class period may be eligible for recovery.

This settlement addresses the Exchange-Based Plaintiffs, who transacted in Eurodollar futures contracts and options on Eurodollar futures, for suing various banks claiming that the banks individually and collectively manipulated U.S. Dollar LIBOR to benefit their trading positions and engaged in the suppression of LIBOR. Plaintiffs claim that the banks’ alleged conduct manipulated Eurodollar Futures prices to artificial levels between January 1, 2003 and May 31, 2011. As a result, Exchange-Based Plaintiffs claim that they traded Eurodollar futures contracts at artificial price levels, paying more and/or receiving less than they would have absent Defendants’ manipulation of the U.S. Dollar LIBOR rate.

There are numerous cases filed in various courts on behalf of different entities and individuals who were potentially affected by the alleged manipulation of LIBOR by Defendants. Many of those cases were transferred to the U.S. District Court for the Southern District of New York and have been consolidated as: In re LIBOR-Based Financial Instruments Litigation, 11-MD-2262. The Settlements that are the subject of the USD LIBOR Eurodollar Futures Settlement were made with Plaintiffs in the Exchange-Based Plaintiffs’ Action only.

It is important to keep in mind that the lawsuit continues against the remaining eight banks, including:

  • Credit Suisse Group AG (“Credit Suisse”);
  • Lloyds TSB Bank plc, Lloyds Banking Group PLC, and HBOS plc (together, “Lloyds”);
  • WestLB AG and Westdeutsche Immobilienbank AG (together, “WestLB”);
  • UBS AG (“UBS”);
  •  The Royal Bank of Scotland Group plc (“RBS”);
  • Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”);
  • The Norinchukin Bank (“Norinchukin”);
  • The Bank of Tokyo-Mitsubishi UFJ, Ltd (“Bank of Tokyo”); and
  • Royal Bank of Canada (“RBC”).

However, for the seven Settling Defendants, a deadline of December 1, 2020 has been set for filing a claim in this settlement pool. If you transacted in Eurodollar Futures Contracts and/or options on Eurodollar Futures on Exchanges such as the Chicago Mercantile Exchange during the relevant class period, contact your FRT representative or email us.

Settling Defendants in USD LIBOR Eurodollar Futures Settlement

Settling DefendantSettlement Amount
Bank of America$15,000,000
Barclays Bank PLC$19,975,000
Citibank$33,400,000
Deutsche Bank$80,000,000
HSBC Bank$18,500,000
J.P. Morgan$15,000,000
Société Générale$5,125,000
Total$187,000,000

Important dates and deadlines

  • Settlement Class Period: January 1, 2003 – May 31, 2011
  • December 1, 2020: Claims Filing Deadline – deadline for submitting Claim Forms
  • September 17, 2020: Fairness Hearing
  • August 27, 2020: Opt-Out Deadline

>> There are 50+ antitrust class actions in active litigation which could yield filing opportunities and substantial recoveries for years to come. Request a copy of our antitrust pipeline to ensure your firm does not miss significant recovery opportunities in antitrust class action settlements.

 

 

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This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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