In addition to the $50 million cash payment, Barclays will be required to provide cooperation to plaintiff and class members represented by Hausfeld and three other law firms.
Plaintiff alleges that Barclays used an algorithmic trading practice known as “last look” to profit from an artificial delay in the execution of foreign exchange trades that counterparties requested over electronic communications networks. Barclays is alleged to have exploited this artificial delay to gauge market movements and determine whether or not the trade favored Barclays at the end of the delay, which is alleged to have ranged from several hundred milliseconds to several seconds. If market movements favored Barclays, Barclays would execute the trade. Otherwise, according to the complaint, Barclays would reject the trade or execute it at a rate less favorable for the counterparties and clients.
Michael D. Hausfeld, Chairman of Hausfeld, stated: “This settlement agreement is the product of months of hard-fought negotiations with Barclays under the supervision and oversight of mediator Kenneth Feinberg. It provides substantial compensation to claimants in addition to valuable cooperation that will strengthen foreign exchange traders’ ability to pursue comparable claims against other banks exploiting this nefarious practice.”
The Axiom case is currently pending before Judge Lorna G. Schofield in the Southern District of New York.
Hausfeld attorneys working on the case are Michael D. Hausfeld, Bonny E. Sweeney, Reena A. Gambhir, Timothy S. Kearns, and Jeannine M. Kenney.
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