The New York Times reported on July 11, 2012, that Baltimore has been leading a battle in Manhattan federal court against the banks that determine the interest rate, the London interbank offered rate, or LIBOR, which serves as a benchmark for global borrowing and stands at the center of the latest banking scandal. According to the article, cities, states and municipal agencies nationwide, including Massachusetts, Nassau County on Long Island, and California’s public pension system, are looking at whether they suffered similar losses and are weighing legal action. Read more…
Class Actions Blog
NY Times reports that municipalities are filing suits against LIBOR banks
Category: Class Actions of Interest |
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Tags: Bank of America, Charles Schwab, Chase Bank, LIBOR antitrust cases
Tags: Bank of America, Charles Schwab, Chase Bank, LIBOR antitrust cases
New Euribor price fixing case filed
It looks like the antitrust class action headache has only just begun for the global banking giants whose daily reports on short-term borrowing rates serve as a benchmark for interest rates on trillions of dollars of securities. I previously wrote a post about the consolidated class actions filed by investors who blame more than a dozen banks for manipulating the London interbank offered rate (or LIBOR). Read more…
LIBOR antitrust complaints filed against banks
In May 2012, three different sets of plaintiffs filed amended complaints in federal court in Manhattan alleging banks around the world colluded to misreport interbank borrowing rates, which are averaged to produce the LIBOR every day. In turn, LIBOR rates (which are currently determined for ten currencies) are used as the primary benchmark for short-term interest rates worldwide. The complaints alleged “LIBOR thus affects the pricing of trillions of dollars’ worth of financial transactions.” Read more…
Compass Bank settles excessive overdraft class action for $11.5 million
Another bank has agreed to settle claims that it had charged excessive overdraft fees when it reordered debit card transactions from highest to lowest.
The parties in a putative class action lawsuit against Compass Bank notified the federal district court in the Southern District of Florida that they executed a Summary Agreement that sets forth the material terms of the parties’ binding and enforceable agreement to fully, finally and forever resolve, discharge, and release all rights and claims in, or that could have been asserted in, the above referenced action based on Compass’ payment of the sum of $11 million. Read more…
U.S. Bank settles excessive overdraft class action for $55 million
Another case involving allegations that banks charged excessive overdrafts when it reordered debit transactions from largest to smallest instead of in the order they were received has settled. The parties notified Judge King in the MDL proceedings pending in the Southern District of Florida that that on July 1, 2012, they executed a Summary Agreement that sets forth the material terms of the Parties’ binding and enforceable agreement to fully, finally and forever resolve, discharge, and release all rights and claims in, or that could have been asserted in, the above referenced actions based on U.S. Bank’s payment of the sum of $55 million (the “Settlement”), without admission of liability by U.S. Bank, subject to preliminary and final approval of the Settlement and dismissal of the actions with prejudice by the Court. The Settlement will be memorialized in a comprehensive written Settlement Agreement and related documents, which the parties will endeavor to file with the Court as part of a motion for preliminary approval within 90 days. Read more…
Judge approves $40 million class action settlement with Lehman Brothers
On June 21, 2012, a federal judge approved a $40 million settlement in a mortgage-backed securities class action lawsuit against individuals previously affiliated with Lehman Brothers Holding, Inc., which in September 2008 filed the largest bankruptcy in US history. Led by locals 302 and 612 of the International Union of Operating Engineers – Employers Construction Trust Fund, New Jersey Carpenters Health Fund, and Boilermakers-Blacksmith National Pension Trust, the plaintiffs are represented by Cohen Milstein Sellers & Toll PLLC. Read more…
