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Pin to quick picksBarclays Share News (BARC)

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UPDATE 2-Currency-rigging lawsuit settlements rise past $2 bln -lawyer

Thu, 13th Aug 2015 23:23

(Adds comment from plaintiffs' lawyer Michael Hausfeld, addscase number)

By Nate Raymond

NEW YORK, Aug 13 (Reuters) - Investors have recovered morethan $2 billion in settlements with nine banks over claims ofprice-rigging in the foreign exchange market, and are continuingto pursue claims against seven other banks, a lawyer for theplaintiffs said Thursday.

HSBC Holdings Plc, Barclays Plc, BNPParibas SA and Goldman Sachs Group Inc areamong the latest banks to reach settlement in the class actionlitigation, Christopher Burke, the lawyer, said in federal courtin Manhattan.

Those banks and five others have agreed to provide"substantial cooperation" as the plaintiffs pursue claimsagainst seven other defendants accused of manipulating prices inthe $5.4 trillion-per-day foreign exchange market, Burke said.

"We look forward if necessary to litigating through trial,"Burke said in an interview after the hearing.

Michael Hausfeld, Burke's co-counsel, called the deals "justthe beginning," saying he is being consulted about bringingcases overseas regarding conduct in the larger Asian andEuropean markets.

Both lawyers declined to say much each bank would pay.Goldman Sachs will pay $129.5 million, a person familiar withthe matter said.

The Wall Street Journal in June reported that HSBC would pay$285 million while Barclays would pay $375 million. Thosenumbers remain unconfirmed, and the banks on Thursday eitherdeclined comment or did not respond to requests for comment.

The plaintiffs previously announced $808.5 millionsettlements with four banks, while Royal Bank of Scotland GroupPlc in May disclosed reaching a deal without announcingthe terms.

Investors including hedge funds and pension funds accusedthe banks of impeding competition by conspiring to manipulatethe WM/Reuters Closing Spot Rates in chat rooms, instantmessages and emails.

According to the plaintiffs, traders at the banks used chatrooms with names such as "The Cartel," "The Bandits' Club," and"The Mafia" to communicate with each other.

They said traders manipulated prices through tactics such as"front running," "banging the close" and "painting the screen,"using disguised names to swap confidential orders.

The settlements came after four of the banks - Citigroup Inc, JPMorgan Chase & Co, Barclays and RBS - pleadedguilty in May in related criminal cases.

In total, U.S. and European regulators have extracted morethan $10 billion in settlements with seven banks over thealleged manipulation schemes.

In the class action, previously announced settlementsinclude $99.5 million from JPMorgan, $394 million fromCitigroup, $180 million from Bank of America Corp and$135 million from UBS AG.

The case is In re: Foreign Exchange Benchmark RatesAntitrust Litigation, U.S. District Court, Southern District ofNew York, No. 13-07789. (Reporting by Nate Raymond in New York; Editing by DavidGregorio and Leslie Adler)

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