Barclays Bank PLC has reached a $120 million settlement with one proposed class of investors leading multidistrict litigation against top banks accused of manipulating the London Interbank Offered Rate (Libor). Barclays reached the settlement with “over-the-counter” investors, a group of investors who had direct interactions with the banks through interest rate swaps and other transactions, agreeing to pay $120 million to settle all remaining claims and to cooperate with the investors in the litigation against other bank Defendants.
The settlement will resolve all of the over-the-counter investors’ claims against Barclays, including antitrust claims that were dismissed by a New York federal judge in 2013 and are currently in the Second Circuit Court of Appeals. The over-the-counter investors are led by the mayor and city council of Baltimore, who first filed their lawsuit in 2011. Barclays will still have to face those claims from other Plaintiffs, including a group of bondholders who held securities that paid interest at rates linked to the Libor rate. The British bank previously settled similar claims brought by investors who transacted in Libor-based Eurodollar futures contracts, agreeing in October 2014 to pay nearly $20 million and cooperate in the litigation.
The over-the-counter investors still have outstanding claims against banks including Citigroup, JPMorgan Chase & Co., Bank of America and UBS AG. Under the settlement, Barclays will cooperate with the Plaintiffs in the ongoing litigation. Barclays previously paid U.S. and U.K. government regulators a total of $450 million in 2012 to settle allegations that it had rigged the Libor and Euro Interbank Offered Rate. UBS also entered a $1.5 billion settlement and Royal Bank of Scotland Group PLC agreed to a settlement for about $612 million.
The over-the-counter Plaintiffs are represented by Michael D. Hausfeld, William P. Butterfield, Hilary K. Scherrer and Nathaniel C. Giddings of Hauseld LLP and William Christopher Carmody, Marc M. Seltzer, Drew Hansen, Arun S. Subramanian and Seth D. Ard of Susman Godfrey LLP.
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