Deutsche Bank AG has agreed to a $170 million settlement with investors accusing big banks of conspiring to rig Euribor in a deal that would bring proposed relief to more than $300 million. Settlement documents were filed in a New York federal court on June 12. The court has already granted preliminary approval to settlement details with Barclays and HSBC for a total of $139 million, which would be paid out to investors who traded on Euribor products during a nearly seven-year period.
The Deutsche Bank settlement proposal is more than one-third of the sum that the bank paid in a European Commission fine over the bank’s alleged role in the “Euro interest rate derivatives’ cartel.” Deutsche Bank will also “provide cooperation to Plaintiffs and the class to aid them in pursuing their case against the nonsettling Defendants.”
The motion also asks the court to conditionally certify a settlement class on the Deutsche Bank claims, approve Lowey Dannanberg and Lovell Stewart as class counsel, appoint Amalgamated Bank as ecrow agent for the settlement fund and approve a proposed class notice and notice plan. The investors first sued the banks in Illinois federal court in February 2013, before the case was transferred to New York that April. Named Plaintiffs include entities like the California State Teachers’ Retirement System, FrontPoint Partners Trading Fund LP, and Sonterra Capital Master Fund Ltd.
The suit claims that from June 2005 to March 2011, the banks conspired to fix Euribor, which is used to reflect the interest rate charged on short-term loans of unsecured funds in euros between prime banks and the wholesale money market. U.S.
The investors are represented by interim co-lead class counsel Vincent Briganti, Geoffrey M. Horn, Peter D. St. Phillip and Michelle E. Conston of Lowey Dannenberg Cohen & Hart PC and Christopher Lovell, Gary S. Jacobson and Ian T. Stoll of Lovell Stewart Halebian Jacobson LLP. Other counsel includes Joseph J. Tabacco, Patrick T. Egan and Todd A. Seaver of Berman DeValerio, Brian P. Murray and Lee Albert of Glancy Prongay & Murray LLP, and David E. Kovel of Kirby McInerney LLP. The case is Sullivan v. Barclays PLC, et al., (case number 1:13-cv-02811) in the U.S. District Court for the Southern District of New York.
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