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id: 1130

Top Banks USD LIBOR $101 Million Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
S.D. New York
Court
MDL 2262
Case number
01 Aug 2007
Class period Start
30 May 2010
Class period End
10 Feb 2024
Claim deadline
Top banks pay $101 million to persons who purchased certain U.S. Dollar LIBOR-based instruments to end litigation over conspiracy to price manipulation.

Those individuals or entities that directly purchased certain U.S. Dollar LIBOR-based instruments from Bank of America, MUFG, Barclays, Citibank, Credit Suisse, Deutsche Bank,  HSBC, JPMorgan Chase, Lloyds, Norinchukin, Rabobank, Royal Bank of Canada, Royal Bank of Scotland, Société Générale, UBS,  or Portigon (or their subsidiaries or affiliates) in the United States; and owned the U.S. Dollar LIBOR-Based Instruments at any time between August 2007 and May 2010, may be entitled to payouts.

The lawsuits include U.S. 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:
  • 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.
  • Collateralized Debt Obligations (“CDOs”) – a type of structured asset back security (“ABS”). CDOs have multiple levels of risk (“tranches”) and are issued by special purpose entities. They are collateralized by debt obligations including bonds and loans.
  • Credit Default Swaps (“CDSs”) – a type of over-the-counter, credit-based derivative where the seller of the CDSs compensates the buyer of the CDS only if the underlying loan goes into default or has another credit event.
  • 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.
  • Inflation Swaps – a type of over-the-counter derivative used to transfer inflation risk from one party to another through an exchange of cash flows.
  • Interest Rate Swaps – a type of over-the-counter derivative in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps are commonly used for both hedging and speculating.
  • Total Return Swaps – a type of over-the-counter derivative based on financial contracts that transfer both the credit and market risk of an underlying asset. These derivatives allow one contracting party to derive the economic benefit of owning an asset without putting that asset on its balance sheet.
  • Options – a type of over-the-counter derivative based on a contract between two parties for a future transaction on an asset. The other derivative instruments, defined above, can serve as the asset for an option.
  • Floating Rate Notes – evidence an amount of money owed to the buyer from the seller. The interest rate on floating rate notes is adjusted at contractually-set intervals and is based on a variable rate index, such as U.S. Dollar LIBOR.
Only U.S. Dollar LIBOR-based instruments that were sold in over-the-counter transactions with a Defendant (or a Defendant’s subsidiaries or affiliates) (OTC transactions) are included in the Settlements.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Price manipulation
Omissions
Suspected Party
Investment Bank
Service Provider
Security Type
Interest Rate
Trade Direction
Long
Filing date
10 October 2012
Attorneys
Susman Godfrey LLP, Hausfeld LLP
Defendants
Rabobank, Lloyds Bank, Bank of Scotland, Royal Bank of Canada, Portigon AG
Judge
Hon. Naomi Reice Buchwald
Administrator
Angeion
Court hearing date
12 December 2023
Exclusion deadline
17 November 2023
Objection deadline
17 November 2023
Hearing deadline
17 November 2023
Trades matching type
FIFO
+$101,000,000
Cash Settlement Amount

USD LIBOR interest rate

The USD LIBOR interest rate is the average interbank interest rate at which a large number of banks on the London money market are prepared/considered to be prepared to lend one another unsecured f...

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