Lowey Dannenberg Cohen & Hart PC has resolved investors’ claims against HSBC Holdings PLC and HSBC Bank PLC in two proposed antitrust class actions alleging the bank fixed yen-denominated Libor rates.
In the first suit, lead plaintiff Jeffrey Laydon lost thousands of dollars in 2006 shorting derivatives of the Euroyen Tokyo Interbank Offered Rate, which is influenced by the London Interbank Offered Rate, or Libor. In a 300-page complaint replete with economic models, he accused the banks that sit on the Libor and Tibor panels, Deutsche Bank AG, JPMorgan & Chase Co., Societe Generale, Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank Ltd. and other banks, of conspiring to fix the rates by submitting agreed-upon estimates. The case, pending in in the U.S. District Court for the Southern District of New York, is Laydon v. Mizuho Bank Ltd. et al., case number 1:12-cv-03419. Citigroup previously reached a proposed $23 million settlement to resolve the claims against it in the suit.
The second suit against several large banks, filed in July 2015, behalf of Sonterra Capital Master Fund Ltd., a New York-based investment firm, also claimed the banks manipulated the Yen Libor, Tibor and Euroyen-based derivatives. This case is Sonterra Capital Master Fund Ltd. et al. v. UBS AG et al, case number 1:15-cv-05844, in the U.S. District Court for the Southern District of New York.
Read the Law360 article here.