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.
How much will it cost to settle the Deutsche Bank case?
Deutsche Bank will pay $240 million and HSBC will pay $100 million into the Settlement Funds. The cost to administer the Settlements, attorneys’ fees, and service payments to the Class Representatives will come out of the Settlement Funds ( see Question 29).
What are the antitrust claims brought in the OTC action?
Plaintiffs in the OTC Action have brought (a) antitrust claims under the Sherman Act, (b) breach of contract claims, and (c) unjust enrichment claims against the Settling Defendants and the Non-Settling Defendants. The Litigation Class was only certified as to the antitrust claims under the Sherman Act.
What happens when a class action lawsuit is settled?
By agreeing to settle, the Parties avoid the costs and uncertainty of a trial, and the class members affected will get a chance to receive compensation. The Plaintiffs and their attorneys think the Settlements are best for all Settlement Class Members.
Will I get any monetary benefits from the settlements?
You will get no monetary benefits from the Settlements. This is the only option that allows you to independently assert the claims released by these Settlements against the Settling Defendants about the alleged U.S. Dollar LIBOR manipulation affecting Eurodollar futures contracts and/or options on Eurodollar futures that are at issue in this case.
When is the Fairness Hearing 2020?
Pursuant to the Court's September 8, 2020 Order, the Fairness Hearing shall be conducted telephonically on the date and time that it was previously scheduled, September 17, 2020 at 11:00 a.m Eastern. Click here for a copy of the Court's Order. USD LIBOR. EURODOLLAR FUTURES.
What happens if you don't postmark your objection?
If your objection (s) are not postmarked by the deadline and do not include the information listed above, the objections will not be valid and may not be considered by the Court.
How to object to settlements?
If you wish to object to the Settlements, or anything else mentioned in this Notice, you must file a written objection. See Question 22 in the Notice for additional information.
Can you get monetary benefits from the settlements?
You will get no monetary benefits from the Settlements. This is the only option that allows you to independently assert the claims released by these Settlements against the Settling Defendants about the alleged U.S. Dollar LIBOR manipulation affecting Eurodollar futures contracts and/or options on Eurodollar futures that are at issue in this case. See Question 17 in the Notice for additional information.
Has the Plan of Distribution been corrected?
UPDATE: There has been a correction to the Plan of Distribution. The corrected Plan is available for review and can be found by clicking the Plan of Distribution link.
Who maintains the settlement website?
This official website is maintained by the Settlement Administrator retained and supervised by Class Counsel for the Settlement Class Members in the action consolidated within In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262, No. 11 Civ. 2613, pending in the United States District Court for the Southern District of New York.
What are LIBOR instruments?
Dollar LIBOR-Based Instruments, which are instruments that include any term, provision, obligation, or right to be paid or to receive interest based upon the U.S. Dollar LIBOR rate. These include, but are not limited to, the following:
What is the LIBOR rate?
Dollar LIBOR panel could borrow funds, were it to do so by asking for and then accepting inter-bank offers in reasonable market size, just prior to 11:00 am London time, and is calculated as the average of the middle eight contributed rates by the sixteen panel banks each day. It is the reference point for determining interest rates for financial instruments worldwide. LIBOR rates are calculated for several currencies, such as U.S. Dollars, and several borrowing periods, ranging from overnight to one year. They are published each business day. The Settlements and Litigation only involve U.S. Dollar LIBOR.
What is an OTC officer?
A judicial officer presiding over this action or his/her immediate family member or are a judicial staff member or juror assigned to the OTC Action.
What is a certified class in a class action lawsuit?
The Court has allowed, or “certified,” a class in this class action lawsuit that may affect you. This is the Litigation Class.
Why is the court authorized to issue a notice?
A Court authorized the notice because you have a right to know about two proposed Settlements and an ongoing Litigation in this class action lawsuit.
What is asset swap?
Asset Swaps – a type of over-the-counter derivative in which one investor exchanges the cash flows of an asset or pool of assets for a different cash flow without affecting the underlying investment position .
What is forward rate agreement?
Forward Rate Agreements (“FRAs”) – a type of over-the-counter derivative based on a “forward contract.” The contract sets the rate of interest or the currency exchange rate to be paid or received on an obligation beginning at a future start date.
What is the LIBOR?
It is alleged that some of the world’s largest banks colluded to manipulate the London Interbank Offered Rate (LIBOR), the world’s leading short-term interest rate benchmark. LIBOR is used as a reference point to set interest rates for a variety of financial products, from simple loans to complex derivatives. Defendants are accused of conspiring to have manipulated LIBOR at artificially low levels. Plaintiffs allege that this manipulation reduced competition, inaccurately reflected risk in the financial system, and decreased investment yields for class members. Defendants are accused of using the following methods of manipulation:
What are the most common instruments covered by LIBOR settlements?
The most common instruments are credit default swaps and interest rate swaps.
How to contact MCAG?
Need more information? Call MCAG at 1-800-355-0466 to learn more or CLICK HERE to complete our contact form and an MCAG representative will respond shortly.
Why do banks use strategies such as ‘bunching’ their rate submissions around lower price targets?
Using strategies such as ‘bunching’ their rate submissions around lower price targets to ensure the effective rate would be suppressed when calculated by Reuters.