Antitrust Law Daily Wrap Up, ANTITRUST—9th Cir.: Dismissal reversed for claims of manipulation of LIBOR-indexed adjustable-rate mortgage loans, (Mar 28, 2014)
Law Firms Mentioned:Houser & Allison, APC | Sullivan & Cromwell LLP
Organizations Mentioned:Barclays Bank PLC | Deutsche Bank National Trust Co. | Sullivan & Cromwell, LLP | Western Progressive, LLC
By Edward L. Puzzo, J.D.
The U.S. Court of Appeals in San Francisco has reversed a lower court’s dismissal of LIBOR manipulation claims against certain lenders in connection with adjustable-rate mortgage loans (Galope v. Deutsche Bank National Trust Company, March 27, 2014, Per Curiam).
Helen Galope brought an action in federal district court, on behalf of herself and similarly situated individuals, against Deutsche Bank National Trust Company as trustee (DBNTC), Barclays Bank and others, alleging antitrust and state unfair trade practices violations in connection with her mortgage loan containing an adjustable rate based upon the London Interbank Offered Rate (LIBOR). Since March 2011, regulators in the United States and various other countries have conducted ongoing investigations into alleged LIBOR manipulation.
After the lower court dismissed her claims, ruling that Galope failed to establish the injury-in-fact required for Article III standing, she appealed. The appellate court reversed in part and affirmed in part.
Standing. Galope adequately alleged that she would not have purchased her loan had she known that the defendants were manipulating the LIBOR rate, the appellate court stated. Further, her standing did not depend on whether she actually made interest payments that were adjusted in response to the allegedly manipulated LIBOR rate. Therefore, the appellate court reversed and remanded for further proceedings Galope’s claims against Barclays Bank. However, the court affirmed the dismissal of DBNTC, finding that Galope had failed to present any evidence that DBNTC was involved in the alleged LIBOR manipulation.
The case is Civil Action No. 12-56892.
Attorneys: Lenore Albert for Helen Galope. Eric D. Houser (Houser & Allison, APC) for Deutsche Bank National Trust Co. and Western Progressive, LLC. David Harold Braff (Sullivan & Cromwell LLP) for Barclays Bank PLC.
Companies: Deutsche Bank National Trust Co.; Western Progressive, LLC; Barclays Bank PLC
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