In what is aptly described as an "ice-breaker" settlement in the amount of $19,975,000 on behalf of a class of traders of Eurodollar futures and options contracts, which entered transaction on exchanges such as the Chicago Mercantile Exchange, law firm Kirby McInerney LLP has reached a $19,975,000 settlement with Barclays Bank PLC over its unlawful manipulation of U.S. Dollar LIBOR, a key benchmark interest rate. Barclays is one of 16 defendant banks in the class action litigation pending in federal court in New York (MDL No. 2262, No. 11-md-2262 (NRB) (S.D.N.Y.)).
The settlement stems from claims that over a period of at least 2 years during the financial crisis beginning in 2007 Barclays engaged in artificial suppression of U.S. Dollar LIBOR to enhance the appearance of the bank's financial condition, as well as over 5 overlapping years of episodic LIBOR manipulation during 2005 to 2010 to benefit Barclays' own trading book.
The Barclays settlement is the first reached in the complex, multidistrict action and is subject to court approval. Its terms include $19,975,000 in civil payments and cooperation by Barclays to share documents and information. This cooperation is expected to strengthen claims in the litigation against existing and other potential defendants.
"This settlement will be some measure of compensation for those who were harmed by LIBOR manipulation. We hope it is just the beginning," said Kirby McInerney partner David Kovel. Kirby McInerney serves as Court-appointed Interim Co-Lead Counsel along with Lovell Stewart Halebian Jacobson LLP for the Exchange-Based Plaintiffs in the litigation.
Kirby McInerney has been counsel in some of the most prominent commodities and securities cases in recent years, including the In re North Sea Brent Crude Oil Futures Litigation pending in the Southern District of New York, and recently representing investors in a class action against Citigroup, Inc., which settled for $590 million on behalf of shareholders.
Other KM News