HSBC Settles Yen Libor Rigging Lawsuits With Investors

Investors and HSBC Holdings PLC (HSBC) and HSBC Bank PLC have settled two proposed anti- trust class action lawsuits accusing the banks of fixing yen-denominated Libor rates. The first lawsuit, which was filed in 2012, contends that lead plaintiff Jeffrey Laydon lost thousands of dollars in 2006 while shorting derivatives involving the Euroyen Tokyo Interbank Offered Rate. Laydon said that the banks on the Tibor and London Interbank Offered Rate Panel, including Deutsche Bank (DB), JPMorgan (JPM), and Mizuho Bank, conspired together to rig the rates through the submission of estimates that they had agreed upon.

A district court judge dismissed the antitrust, vicarious liability, and unjust enrichment allegations but allowed for the claims accusing the banks of violating the Commodity Exchange Act through price manipulation. Last year, the judge dismissed ICAP PLC (IAP), Resona Bank Ltd., and Mizuho as defendants of the case after finding that they and the markets operator lacked sufficient contact with the Second Circuit or the U.S. Laydon was then allowed to add Tullet Prebon PLC (TLPR), Lloyds Banking Group PLC (LYG), ICAP Europe LTD., and Martin Brokers UK Ltd. as defendants. In an amendment to the complaint, Laydon said he was asserting antitrust, CEA, RICO, unjust enrichment, and vicarious liability claims against the added defendants.

The second lawsuit also names several banks as defendant. Sonterra Capital Master Fund ltd. is claiming that HSBC and others manipulated the Tibor, Yen Libor, and derivatives that are Euroyen-based.

It was just in February that Citigroup Inc.(C) said it would pay $23M to resolve a private antitrust case accusing it of conspiracy involving the manipulation of the yen Libor benchmark and Euroyen Tibor interest rates. Brokerage firm RP Martin also reached a settlement but did not have to pay any money. Other banks that have been sued for allegedly rigging Euroyen Tibor, yen Libor, and Euroyen Tibor futures contracts are Sumitomo Mitsui Trust Holdings, UBS AG (UBS), Barclays (BARC) and Mitsubishi UFJ Financial Group.

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HSBC, Investors To Settle Yen Libor Rigging Suits, Law360, May 6, 2016

Citigroup to Pay $23M to Resolve Yen Libor and Euroyen Tibor Rigging Claims, Institutional Investor Securities Blog, February 2, 2016