Five more banks, including Morgan Stanley, have reached settlements totaling $111.2 million with investors in the wide-ranging suit accusing the world’s largest banks of rigging foreign exchange rates, bringing total relief in the case to more than $2.1 billion. The latest settlements reached were with Bank of Tokyo-Mitsubishi UFJ Ltd., Morgan Stanley, RBC Capital Markets LLC, Societe Generale and Standard Chartered PLC, according to a motion for preliminary approval filed in New York federal court.
The lawsuit, which was first filed in 2013 amid regulatory probes, accused major financial institutions of engaging in a scheme to rig the $6 trillion foreign exchange market from at least 2007 to 2013. Lianne Craig, a partner with Hausfeld in London, issued a statement suggesting there’s additional recovery to be obtained on behalf of investors around the world. She stated:
The extent of collusive conduct in the FX market is now clear. U.S. investors and those trading in the United States will see compensation from these settlements. But the majority of the world’s investors will need to pursue action outside the United States to recover their significant losses. London, the center of the global foreign exchange market, is the logical place to pursue such concerted action.
In December 2015, U.S. District Judge Lorna Schofield gave an early approval to the first nine settlements totaling $2 billion reached with Bank of America Corp., Barclays PLC, BNP Paribas SA, Citigroup Inc., HSBC Holdings PLC, Goldman Sachs Group Inc., JPMorgan Chase & Co., Royal Bank of Scotland PLC and UBS AG. Under terms of the latest settlement, Morgan Stanley will pay $50 million, Societe Generale will pay $18 million, Standard Chartered will pay $17.2 million, RBC will pay $15.5 million and BTMY will pay $10.5 million. The Plaintiffs also filed a motion for approval of a revised notice plan and plan of distribution to incorporate the new amounts. The remaining Defendants include Credit Suisse AG, along with its affiliates Credit Suisse Group AG and Credit Suisse Securities USA LLC, and Deutsche Bank AG, and Deutsche Bank Securities Inc.
The case is In re: Foreign Exchange Benchmark Rates Antitrust Litigation (case number 1:13-cv-07789) in the U.S. District Court for the Southern District of New York.
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