Foreign Exchange (FOREX) Benchmark Rates Antitrust

oreign Exchange (FOREX) Benchmark Rates Antitrust Settlement

Class Members Eligible for the Foreign Exchange Benchmark Rates Antitrust Settlement

In the Court’s Preliminary Approval Orders, the Court preliminarily approved two Settlement Classes.

First, the Direct Settlement Class is defined as:

All Persons who, between January 1, 2003 and December 15, 2015 entered into an FX Instrument directly with a Defendant, a direct or indirect parent, subsidiary, or division of a Defendant, a Released Party, or co-conspirator where such Persons were either domiciled in the United States or its territories or, if domiciled outside the United States or its territories, transacted FX Instruments in the United States or its territories.

Second, the Exchange-Only Settlement Class is defined as:

All Persons who, between January 1, 2003 and December 15, 2015 entered into FX Exchange-Traded Instruments where such Persons were either domiciled in the United States or its territories or, if domiciled outside the United States or its territories, entered into FX Exchange-Traded Instruments on a U.S. exchange.

You are not included in either of the Settlement Classes if you are:

  • a Defendant;
  • a Released Party;
  • a co-conspirator;
  • an officer, director, or employee of any Defendant, Released Party, or co-conspirator;
  • an entity in which any Defendant, Released Party, or co-conspirator has a controlling interest;
  • an affiliate, legal representative, heir, or assign of any Defendant, Released Party, co-conspirator, or a person acting on their behalf; or
  • a judicial officer presiding over this Action or a member of his/her immediate family or judicial staff, or a juror assigned to this Action.

However, “Investment Vehicles,” meaning any investment company or pooled investment fund, including, but not limited to, mutual fund families, exchange-traded funds, fund of funds, and hedge funds, in which a Defendant has, or may have, a direct or indirect interest or as to which its affiliates may act as an investment advisor, but of which a Defendant, or its respective affiliates, is not a majority owner or does not hold a majority beneficial interest, are not excluded from the Settlement Classes.

“FX Benchmark Rates” means, collectively: (i) the WM/Reuters fixing rates, including the 4:00 p.m. London closing spot rate; (ii) the European Central Bank (“ECB”) FX reference rates, including the ECB rate set at 1:15 p.m. London time; (iii) the Chicago Mercantile Exchange (“CME”) daily settlement rates, including the rate set at 2:00 p.m. Central Time; and (iv) any other FX benchmark, fixing, or reference rate.

“FX Exchange-Traded Instruments” means any and all FX Instruments that were listed for trading through an exchange, including, but not limited to, FX futures and options on FX futures.

“FX Instruments” means FX spot transactions, forwards, swaps, futures, options, and any other FX instrument or F transaction that the trading or settlement value of which is related in any way to FX rates.

“FX Trading” means the trading of FX Instruments and FX Exchange-Traded Instruments, regardless of the manner in which such trading occurs or is undertaken, or a decision to withhold bids and offers, with respect to FX Instruments or FX Exchange-Traded Instruments.

“Settlement Class Member” means a Person who is a member of one of the Settlement Classes and has not timely and validly excluded himself, herself, or itself in accordance with the procedures established by the Court.

Foreign Exchange (FOREX) Benchmark Rates Antitrust Litigation Settlement Case History:

Generally, Class Plaintiffs allege that Defendants conspired to fix prices in the FX market in violation of Sections 1 and 3 of the Sherman Antitrust Act, 15 U.S.C. §§1, 3, and that Defendants manipulated the FX market in violation of the Commodity Exchange Act, 7 U.S.C. §§1, et seq. Class Plaintiffs allege that this conduct was carried out through a number of different means.

Class Plaintiffs allege that Defendants conspired to fix FX Benchmark Rates paid by members of the Settlement Classes. FX Benchmark Rates are rates that are published at certain times during the day and are prices at which Defendants offered to, and did, transact with members of the Settlement Classes. The most widely used of the FX Benchmark Rates are the WM/Reuters Closing Spot Rates, which, for the most widely traded currency pairs, were set at 4:00 p.m. London time using the median price of actual trades executed in the market on certain venues between 3:59:30 p.m. and 4:00:30 p.m. London time. Class Plaintiffs allege Defendants shared confidential order and trade information to coordinate their trading positions and trading strategy to manipulate and fix the FX Benchmark Rates.

Class Plaintiffs allege that Defendants conspired to fix the spreads that Defendants quoted to members of the Settlement Classes. As described in the Third Consolidated Amended Class Action Complaint (“Complaint”), spreads are the difference between the rate at which a Defendant indicated it would buy a currency and the rate at which a Defendant would sell a currency. Class Plaintiffs allege that Defendants discussed and agreed upon spreads through communications in chat rooms and other means. The alleged conspiracy to fix spreads is alleged to have reduced competition in the FX market and artificially increased the spread, with the result that Defendants bought currency at a lower price than they would have absent the alleged conspiracy, sold currency at a higher price than they would have absent the alleged conspiracy, and quoted less competitive spreads than they would have absent the alleged collusion.

Class Plaintiffs also allege that Defendants conspired to attempt to trigger clients’ stop loss and limit orders, work client limit orders at levels better than the limit order price, front-run client orders, and further fix prices by “banging the close” (i.e., breaking up large client orders into small trades immediately before and during the setting of FX Benchmark Rates), “painting the screen,” and engaging in other tactics as alleged in the Complaint.

Class Plaintiffs allege that, as a result of this conduct, members of the Settlement Classes paid supra-competitive prices for FX transactions. Defendants deny Class Plaintiffs’ allegations of wrongdoing.

The Court has preliminarily approved Settlements with Bank of America, BTMU, Barclays, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBC, RBS, Soc Gen, Standard Chartered, and UBS. To resolve all Released Claims against all Released Parties, Settling Defendants have agreed to pay a total of $2,310,275,000.

The Settlement Amount including any funds paid for the purposes of contributing to notice and administration costs, agreed to by each Settling Defendant is:

Settling Defendant Settlement Amount
BTMU $10,500,000
Bank of America  $187,500,000
Barclays $384,000,000
BNP Paribas $115,000,000
Citigroup $402,000,000
Deutsche Bank $190,000,000
Goldman Sachs $135,000,000
HSBC  $285,000,000
JPMorgan $104,500,000
Morgan Stanley $50,000,000
RBC $15,500,000
RBS $255,000,000
Soc Gen $18,000,000
Standard Chartered $17,200,000
UBS $141,075,000
Total Settlements $2,310,275,000

Foreign Exchange (FOREX) Benchmark Rates Antitrust Litigation Settlement Defendants:

The purpose of this Notice is to inform you of the pending proposed class action lawsuit (the “Action”) and of the settlements of the Action (the “Settlements” or “Settlement Agreements”) with the following “Settling Defendants”:

  1. Bank of America Corporation, Bank of America, N.A., and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Bank of America”);
  2. The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”);
  3. Barclays Bank PLC and Barclays Capital Inc. (“Barclays”);
  4. BNP Paribas Group, BNP Paribas North America Inc., BNP Paribas Securities Corp., and BNP Prime Brokerage, Inc. (“BNP Paribas”);
  5. Citigroup Inc., Citibank, N.A., Citicorp, and Citigroup Global Markets Inc. (“Citigroup”);
  6. Deutsche Bank AG and Deutsche Bank Securities Inc. (“Deutsche Bank”)
  7. The Goldman Sachs Group, Inc. and Goldman Sachs & Co. (“Goldman Sachs”);
  8. HSBC Holdings PLC, HSBC Bank PLC, HSBC North America Holdings Inc., HSBC Bank USA, N.A., and HSBC Securities (USA) Inc. (“HSBC”);
  9. JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. (“JPMorgan”);
  10. Morgan Stanley, Morgan Stanley & Co., LLC, and Morgan Stanley & Co., International PLC (“Morgan Stanley”);
  11. RBC Capital Markets LLC (“RBC”);
  12. The Royal Bank of Scotland Group PLC, The Royal Bank of Scotland PLC, and RBS Securities Inc. (“RBS”);
  13. Société Générale (“Soc Gen”);
  14. Standard Chartered Bank (“Standard Chartered”); and
  15. UBS AG, UBS Group AG, and UBS Securities LLC (“UBS”).

The Non-Settling Defendants are:

  1. Credit Suisse Group AG, Credit Suisse AG, and Credit Suisse Securities (USA) LLC (“Credit Suisse”)

Our Class Action Settlement Services:

CAC Recovery navigates the complex intricacies of the Foreign Exchange (FOREX) Benchmark Rates Antitrust Settlement claims filing process to help businesses maximize their settlement recoveries.
Foreign Exchange (FOREX) Benchmark Rates Antitrust Settlement Fund CAC Recovery Services
Our class action settlement services include:

  • Identifying class action claims where businesses may be eligible to file
  • Filing the class action claim with supporting documentation
  • Interacting with the class action Claims Administrator
  • Providing updates on class action claim settlements status
  • Resolving Claims Administrator questions on claims
  • Reviewing the recovery to assure the correct compensation claims amount has been received

Our Guarantee: We Get Paid When You Recover – No hidden charges or up-front fees. We provide our class action settlements services based on a contingency fee.

Getting Started is easy! If you represent a business we’ll first have you fill out our Get Started form and a CAC representative will contact you within 24 hours to review your eligibility and walk you through the claims process.