GSE Bond Case Update (December 2019): More Banks Settle Bringing Total Recovery to $386.5M

 

Updated in February 2020: The claim filing deadline was extended to February 28, 2020 from February 5, 2020. 

In September, we wrote about the Court’s preliminary approval of settlements with the Deutsche Bank and Tennessee’s First Horizon – click here to read the blog.

On December 12, 2019, the Court preliminary approved a settlement with Goldman Sachs which, when combined with the earlier two, brought the total to $49.5 million (important dates and deadlines below).  The claim filing deadline was extended to February 28, 2020 from February 5, 2020.  

On December 16, 2019, the parties filed for preliminary approval of another $337 million for settlements with the remaining 13 defendants. The Court has not yet set a claim filing deadline for these additional settlements. The recovery breaks down as follows:

  • A $87 million settlement involving defendant, Barclays Capital Inc
  • A $250 million settlement involving defendant banks:
    1. BNP Paribas Securities Corp.
    2. Cantor Fitzgerald & Co.
    3. Citigroup Global Markets Inc.
    4. Credit Suisse Securities (USA) LLC
    5. HSBC Securities (USA) Inc.
    6. J.P. Morgan Securities LLC
    7. Merrill Lynch, Pierce, Fenner & Smith Inc.
    8. Morgan Stanley & Co., LLC;
    9. Nomura Securities International, Inc.
    10. SG Americas Securities LLC
    11. TD Securities (USA) LLC
    12. UBS Securities LLC

Together, these settlements bring the total recoveries to $386.5 million.

If approved, the settlement will finally resolve claims that these defendants rigged the prices of bonds issued by Fannie Mae and Freddie Mac.

IMPORTANT DATES AND DEADLINES

For the settlements with Deutsche, FTN, and Goldman:

  • February 14th, 2020 (extended from January 16, 2020): Opt-Out Deadline – deadline for submitting Requests for Exclusion
  • February 28, 2020 (extended from February 5, 2020): Claims Filing Deadline – deadline for submitting Claim Forms
  • February 28, 2020: Settlement Hearing

If you entered into a GSE Bond Transaction at any time during the relevant period, contact your FRT representative or email us at learnmore@frtservices.com.

Learn More

To learn more about how FRT can help your firm maximize recoveries in antitrust and all shareholder class action settlements, email us at  learnmore@frtservices.com.

About FRT

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Founded in 2008, Financial Recovery Technologies (FRT) is the 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.

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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