Lessons Learned from the LIBOR (currently $800 million) Antitrust Case

Jenn Rothenberg, VP of Marketing, Financial Recovery Technologies

With more than 50 efforts at different stages of litigation, investors may not be prepared to take full advantage of what lies ahead in these Antitrust (non-securities) class action cases. For the LIBOR Antitrust Case [Barclays (December 2017) and Citigroup (March 2018)], FRT filed for over 16,000 accounts that included nearly 6 million data transactions. We filed for some of the largest asset managers and hedge funds in the world as well as hundreds of other clients.

With the FOREX (May 16, 2018 extended from March 22, 2018), ISDAfix (July 16, 2018) and Euroyen (September 25, 2018 extended from the previous deadline of February 20, 2018) deadlines fast approaching, here are a few lessons learned that may be relevant for future Antitrust cases:

LIBOR ANTITRUST CASE: LESSONS LEARNED

  • Investors found that their current custodian was not handling LIBOR (or any Antitrust cases) for them:  FRT received a number of inbound inquiries from investors who had assumed LIBOR was being handled for them. But after speaking with their current custodian, they realized at the 11th hour that this was not the case.

While Antitrust cases in the U.S. may seem like securities class action cases (i.e. relatively anonymous) they are vastly more complex and require expertise in not only class action filing, but also Antitrust process and procedures (i.e. client portal, constructed trades, etc). FRT is the pioneer in Antitrust Class Action Recovery and has developed proprietary software systems to track and manage processes in antitrust cases, including processes for eligibility identification and claim filing.  

  • Data needed was not standard: Similar to the CDS case, the data required to file for LIBOR was not standard data typically provided for securities class actions. The covered instruments “LIBOR-Based Derivative Instruments” include Asset swaps, Collateralized Debt obligations, Credit default swaps, Forward rate agreements, Inflation swaps, Interest rate swaps, Total Return swap, Options, and Floating rate notes. These instruments do not have a uniform securities identifier and some are traded over the counter.

FRT is a technology company and we’re uniquely positioned to query for (or assist clients in querying) the transactions required to file for LIBOR (or any Antitrust cases). For LIBOR, FRT was able to supplement transactions for clients.

We complement our robust technology with a large, experienced operational team who is trained to understand the necessary derivative data needed in antitrust cases, capable of identifying and rectifying gaps, available for consultation with clients about best-practices for obtaining data, and possessing the know-how required to successfully file antitrust claims. The team consists of five separate groups including in-house legal experts, data analysts, and claims filing specialists.

  • Filing was time sensitive: For some clients, investors realized at the last possible moment (hours before the deadline) that they had not filed for LIBOR.

As pioneers in Antitrust recovery, FRT has developed repeatable, controlled workflows designed especially for the purpose of handling antitrust cases. We were able to query, ingest, analyze and work directly with the claims administrator to help clients right up until midnight on the day of the deadline to have all clients who needed help with LIBOR filed. 

  • LIBOR case is not over: Barclays Bank PCL ($120 million), Citigroup Inc ($130 million), Deutsche Bank ($240 million), HSBC Holdings ($100 million) and a handful of banks for LIBOR bondholders have reached settlement agreements. This brings the settlement pool to $800 million. Outstanding claims against multiple banks remain.

FRT will continue to monitor for other settling defendants and key dates that impact this Antitrust case.

While Antitrust claims filing is challenging, it can be done. Contact FRT at learnmore@frtservices.com to leverage our experience and technology to help you through the process.

WHAT DEFENDANTS HAVE SETTLED IN LIBOR?

Barclays: A Settlement has been reached with Barclays Bank. The Settlement does not impact claims in the lawsuit against the Non-Settling Defendants, and the lawsuit against them is still ongoing.

Citigroup: On August 7, 2017, Citigroup agreed to a $130 million settlement for investors who who bought the bank’s financial products tied to the London Interbank Offered Rate. Citigroup was the second bank to settle and the claims process for this settlement is separate from the Barclays settlement. 

Deutsche Bank AG: On Tuesday, February 27, 2018, Deutsche Bank AG agreed to a $240 million settlement for investors who suffered as a result of the banks’ manipulation of the London Interbank Offer Rate (LIBOR). Deutsche Bank AG is the third bank to settle. The claims process for this settlement may be separate from the Barclays and Citigroup settlements.

HSBC Holdings Plc: On Thursday, March 29, 2018, HSBC Holdings Plc agreed to a $100 million settlement with “over-the-counter” or OTC investors who suffered as a result of the banks’ manipulation of the London Interbank Offer Rate (LIBOR).

WHAT DEFENDANTS HAVE NOT SETTLED IN LIBOR?

The plaintiffs in this litigation have yet to resolve related allegations against several other defendants including:

  • Bank of America Corp.
  • Bank of Tokyo-Mitsubishi UFJ Ltd.
  • Credit Suisse Group AG
  • JPMorgan Chase & Co.
  • Royal Bank of Canada
  • UBS AG

Learn More

For more information about LIBOR Antitrust, please reach out to your account manager or email us at learnmore@frtservices.com.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

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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