What is this lawsuit about?
In a class-action lawsuit about alleged manipulation of the London Interbank Offered Rate (“LIBOR”), a Settlement has been reached with the remaining Defendants. The lawsuit claims that the Settling Defendants and other banks (see FAQ 2) unlawfully manipulated U.S. Dollar LIBOR, artificially lowering the rate and causing class members to lose money in connection with loans and transactions regarding loans that paid interest based upon U.S. Dollar LIBOR.
Who are the Settling Defendants?
The Settling Defendants are The Royal Bank of Scotland Group plc (n/k/a NatWest Group plc), British Bankers’ Association, BBA Enterprises Ltd., BBA Trent Ltd. (f/k/a BBA LIBOR Ltd.) (together, “BBA”), Coöperatieve Rabobank U.A. (f/k/a Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.), Lloyds Banking Group plc and HBOS plc (together, “Lloyds”), The Norinchukin Bank, Portigon AG (f/k/a WestLB AG), Westdeutsche Immobilien Servicing AG (f/k/a Westdeutsche ImmobilienBank AG), and Royal Bank of Canada.
Who is included?
You are included in the Settlement if you are lending institution headquartered in the United States, including United States territories, and originated loans, held loans, held interests in loans, owned loans, owned interests in loans, purchased loans, purchased interests in loans, sold loans, or sold interests in loans with interest rates based upon U.S. Dollar LIBOR (“U.S. Dollar LIBOR-Based Loans”), which rates adjusted at any time between August 1, 2007, and May 31, 2010. Class Members will release claims through the Settlements only against Settling Defendants and their affiliates, officers, directors, employees, and other related persons.
The loans affected include, among others: U.S. Dollar LIBOR-based loans that include a term, provision, or obligation or right to receive interest payments based on U.S. Dollar LIBOR. The Settlement does not include other types of U.S. Dollar LIBOR-based instruments such as interest rate swaps or bonds.
What do these Settlements provide?
The Settlement with the Settling Defendants will create a $1,900,000 Settlement Fund that will be used to pay eligible Class Members who submit valid claims. The cost to administer the Settlement, attorneys’ fees, and the payment to the Class Representatives will come out of the Settlement Fund (See FAQ 20).
Where can I find information about previous Settlements?
Previous Settlements with Citibank, HSBC and Barclays Credit received final approval from the Court on December 20, 2018. Previous Settlements with JPMorgan, Bank of America, and UBS received final approval from the Court on May 26, 2020. A previous Settlement with Deutsche Bank received final approval from the Court on March 15, 2021. Previous Settlement with Suisse Group AG and MUFG Bank, Ltd. f/k/a The Bank of Tokyo-Mitsubishi UFJ, Ltd. received final approval from the Court on July 26, 2022. Information about these prior settlements can be accessed via the FAQ page.