<strong><u>Swiss Franc LIBOR Class Action: Credit Suisse Settlement</u></strong>

Swiss Franc LIBOR Class Action: Credit Suisse Settlement

While we have written frequently on various LIBOR-related litigations, this post will focus on a yet-uncovered action—Sonterra Capital Master Fund, Ltd. V. Credit Suisse Group AG et al.—targeting the Swiss Franc LIBOR.

The 2015 class action complaint, brought by Sonterra Capital against Credit Suisse, JP Morgan, RBS, UBS, and a series of Doe defendants, alleged that Defendants had engaged in a conspiracy to manipulate Swiss Franc LIBOR and the prices of Swiss Franc LIBOR-based derivatives.  As with the many other LIBOR actions, the heart of the allegations concerns misreporting: namely, that Defendants failed to accurately report their borrowing costs—the basis for the Swiss Franc LIBOR calculation—and instead altered their pricing submissions to manipulate the prices of financial instruments based on that metric, for their own financial benefit. 

Continue reading Swiss Franc LIBOR Class Action: Credit Suisse Settlement

SECOND CIRCUIT DELIVERS BLOW TO ANTITRUST “UMBRELLA STANDING”

SECOND CIRCUIT DELIVERS BLOW TO ANTITRUST “UMBRELLA STANDING”

Umbrella standing had been an open question in the Second Circuit, with district courts coming to different conclusion, but the Court of Appeals addressed the issue in December 2021, and its decision in Schwab Short-Term Bond Mkt. Fund v. Lloyds Banking Grp. PLC, 22 F.4th 103 (2d Cir. 2021) (“Schwab II”), dealt a major blow to umbrella standing proponents. Continue reading SECOND CIRCUIT DELIVERS BLOW TO ANTITRUST “UMBRELLA STANDING”

Benchmark Manipulation: SIBOR Update, Part III

Benchmark Manipulation: SIBOR Update, Part III

motion to dismiss and Plaintiffs’ subsequent filing of their Fourth Amended Complaint (take a look here), followed by a post summarizing the opening and opposition briefing on Defendants’ latest motion to dismiss (you’ll find that post here).  Today, we’ll take a quick look at Defendants’ replies, along with Plaintiffs’ motion for a sur-reply and the resulting brief, and, finally, Defendants’ subsequent sur-sur-reply.   Continue reading Benchmark Manipulation: SIBOR Update, Part III

Benchmark Manipulation: SIBOR Update, Part II

Benchmark Manipulation: SIBOR Update, Part II

Before diving into this post, I’d recommend you click back to catch up on the Second Circuit’s vacatur and Plaintiffs’ filing of their Fourth Amended Complaint. In this installment, we will cover the opening and opposition briefing on the motion to dismiss; stay tuned for Part III for details on the reply and sur-reply briefing.   Continue reading Benchmark Manipulation: SIBOR Update, Part II

Benchmark Manipulation: SIBOR Update, Part I

Benchmark Manipulation: SIBOR Update, Part I

When we last posted about the litigation challenging alleged manipulation of SIBOR – the Singapore Interbank Offered Rate – the district court had just dismissed plaintiffs’ claims for lack of standing. But that wasn’t the end of the line for Fund Litigation, et al: Plaintiffs’ appeal of the standing decision was successful, and a fourth amended complaint has been filed—and, of course, a new motion to dismiss. This post will cover the Second Circuit’s decision and the latest complaint; next week, we’ll provide a full review of the motion to dismiss briefing.   Continue reading Benchmark Manipulation: SIBOR Update, Part I

Breaking LIBOR was Easy.  Fixing it May be Hard.

Breaking LIBOR was Easy. Fixing it May be Hard.

This post is the first in a series of posts on the particularly complex issue of LIBOR transition on asset-backed securities, such as residential mortgage-backed securities, which face the additional complication of there being two levels of transition: LIBOR-indexed mortgage notes that are assets of the securitization trust and LIBOR-indexed interest rates paid on the securities issued the securitization trust. Continue reading Breaking LIBOR was Easy. Fixing it May be Hard.