Antitrust Law Daily Wrap Up, ANTITRUST—S.D. N.Y.: Consolidation granted in forex benchmark rate manipulation suits, (Aug 18, 2015)
Law Firms Mentioned:Boni & Zack LLC | Cahill Gordon & Reindel LLP | Entwistle & Cappucci LLP | Hausfeld LLP | Kirkland & Ellis LLP | Obermayer Rebmann Maxwell & Hippel LLP | Scott Scott, LLP | Skadden, Arps, Slate, Meagher & Flom LLP | Sullivan and Cromwell, LLP
Organizations Mentioned:Augustus International Master Fund, LP | Bank of America | Barclays Bank PLC | Boni & Zack, LLC | Cahill Gordon & Reindel, LLP | Citigroup | Citigroup, Inc. | Covington & Burling, LLP | Credit Suisse Group AG | Deutsche Bank AG | Entwistle & Cappucci, LLP | HSBC Holdings, PLC | Hausfeld, LLP | Haverhill Retirement System | JPMorgan Chase | JPMorgan Chase & Co. | Kirkland & Ellis, LLP | Obermayer Rebmann Maxwell & Hippel, LLP | RBS | Scott + Scott, LLP | Skadden Arps | State-Boston Retirement System | Sullivan & Cromwell, LLP | UBS, AG | Value Recovery Fund LLC
By Linda O’Brien, J.D., LL.M.
The federal district court in New York City has granted a request to consolidate several putative class action suits filed by investors and investment entities charging domestic and foreign global financial institutions and their subsidiaries with colluding to manipulate and rig the global benchmarks for foreign exchange futures contracts and options, known as the London Fix, on the exchanges in the United States (In re Foreign Exchange Benchmark Rates Antitrust Litigation, August 13, 2015, Schofield, L.).
Banking institutions Bank of America Corporation, Barclays Bank Plc, Citigroup, Inc., HSBC Holdings plc, J.P. Morgan Chase & Co., The Royal Bank of Scotland Group plc (RBS), and UBS AG and their subsidiaries deal in foreign currency and participate in the global trading of foreign exchange (forex) future contracts and options on futures contracts on the various exchanges in the U.S.
Investment funds, pension plans, hedge funds, and investors, in their complaints, alleged that, beginning in January 2008, the defendant banks conspired to manipulate forex spot prices and benchmark rates to benefit their trading activities, primarily in connection with the setting of the London Fix. The plaintiffs claimed that the defendants shared confidential information with one another through voice trading operations, chat rooms, electronic messaging, and email and developed and executed trading strategies to manipulate the spot prices and benchmark rates for selected currencies.
Robert Teel, an investor who filed suit in June, along with other plaintiffs, moved for consolidation of the cases.
The court ordered the consolidation of five cases into the present action for all purposes and appointed Scott + Scott LLP as interim co-lead counsel for the exchanged traded class.
The cases are Nos. 13 Civ. 7789, 15 Civ. 1350, 15 Civ. 2705, 15 Civ. 4230, 15 Civ. 4436, and 15 Civ. 4926.
Attorneys: Christopher M. Burke (Scott Scott, LLP) and William P. Butterfield (Hausfeld LLP) for Haverhill Retirement System and State-Boston Retirement System. Andrew J. Entwistle (Entwistle & Cappucci LLP ) for Value Recovery Fund LLC and Augustus International Master Fund, LP. Angela L. Baglanzis (Obermayer Rebmann Maxwell & Hippel LLP), and John Elliott Sindoni (Boni & Zack LLC) for The City of Philadelphia, Board of Pensions and Retirement. David Harold Braff (Sullivan and Cromwell, LLP) for Barclays Bank PLC. Alan M. Wiseman (Covington & Burling, LLP) for Citigroup, Inc. David George Januszewski (Cahill Gordon & Reindel LLP) for Credit Suisse Group AG. Joseph Serino, Jr. (Kirkland & Ellis LLP) for Deutsche Bank AG. Peter Edward Greene (Skadden, Arps, Slate, Meagher & Flom LLP) for JPMorgan Chase & Co.
Companies: Haverhill Retirement System; State-Boston Retirement System; Value Recovery Fund LLC; Augustus International Master Fund, LP; Barclays Bank PLC; Citigroup, Inc.; Credit Suisse Group AG; Deutsche Bank AG; JPMorgan Chase & Co.
Cases: Antitrust NewYorkNews