Antitrust Law Daily Wrap Up, ANTITRUST NEWS: HSBC to settle Yen LIBOR manipulation suit, (May 9, 2016)
Law Firms Mentioned:Locke Lord LLP
Organizations Mentioned:Bank of Yokohama, Ltd. | Deutsche Bank AG | HSBC Bank plc | HSBC Holdings plc | HSBC Holdings, PLC | Locke Lord, LLP | Lowey Dannenberg Cohen & Hart, PC | Mitsubishi UFJ Trust and Banking Corp. | Mitsubishi Ufj Trust & Banking Corp. | Mizuho Bank, Ltd. | Mizuho Corporate Bank, Ltd. | Sumitomo Mitsui Banking Corp. | Sumitomo Trust and Banking Company, Ltd. | The Bank of Tokyo Mitsubishi UFJ, Ltd. | The Bank of Yokohama, Ltd. | The Norinchukin Bank
By Linda O’Brien, J.D., LL.M.
In an action by investors against major domestic and foreign financial institutions for conspiring to manipulate the Japanese Yen London Interbank Offered Rate (LIBOR) and Euroyen Tokyo Interbank Offered Rate (TIBOR) benchmarks, defendant British banking and financial services company HSBC Holdings plc has reached a settlement with the investor plaintiffs, according to a letter filed in the federal district court of New York City (Laydon v. Mizuho Bank, Ltd., May 4, 2016).
In April 2012, Jeffrey Laydon, an investor in Yen LIBOR and Euroyen TIBOR futures contracts, filed suit against several major domestic and foreign banks for conspiring to manipulate the LIBOR and TIBOR rates, which reflect the interest on short term loans denominated in Japanese yen. In March 2015, the court denied motions to dismiss for lack of personal jurisdiction by defendants Deutsche Bank AG, The Shoko Chukin Bank, Ltd., The Bank of Yokohama, Ltd., Sumitomo Mitsui Banking Corp., Mizuho Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, and The Norinchukin Bank. In July 2015, the defendants’ motion for reconsideration was also denied.
According to the letter, the plaintiffs and defendant HSBC have reached a binding settlement of the litigation. The parties are seeking a stay of the proceedings until a formal class settlement agreement is completed, which is expected to take 45 days or less.
The terms of the settlement were not released.
The case is No. 12-cv-3419 (GBD) (HBP).
Attorneys: Thomas Michael Skelton (Lowey Dannenberg Cohen & Hart, PC) for Jeffrey Laydon. James Matthew Goodin (Locke Lord LLP) for HSBC Holdings plc and HSBC Bank plc.
Companies: The Bank of Tokyo Mitsubishi UFJ, Ltd.; Mitsubishi UFJ Trust and Banking Corp.; Sumitomo Mitsui Banking Corp.; Mizuho Corporate Bank, Ltd.; The Bank of Yokohama, Ltd.; Sumitomo Trust and Banking Company, Ltd.; HSBC Holdings plc; HSBC Bank plc
News: Antitrust NewYorkNews