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Foreign Exchange (FX)

Related Lawyers: Michael D. Hausfeld, Reena A. Gambhir, Timothy S. Kearns, Nathaniel C. Giddings, Sarah R. LaFreniere
Related Practice Areas: Antitrust / Competition, Financial Services and Securities

In re Foreign Exchange Benchmark Rates Antitrust Litigation, No. 1-13-CV-07789 (S.D.N.Y.) – Hausfeld represents parties that engaged in over-the-counter foreign exchange ("FX") transactions with the world's largest banks and their affiliates and investors who entered into FX transactions through domestic exchanges. This class action lawsuit alleges that these banks colluded to fix and manipulate the prices of FX transactions.

Plaintiffs allege that Defendants colluded with respect to FX prices and used a number of methods to carry out their conspiracy. For instance, Defendants shared, through electronic chat rooms, the prices and spreads they quoted to customers, permitting Defendants to align pricing and eliminate price competition. Defendants also shared their own order books and coordinated the timing of trades at the expense of their customers, manipulating the prices experienced by class members. This permitted Defendants to both front-run their client trades and benefit from the price movement their client’s trades would generate. Furthermore, Defendants communicated their clients’ confidential information, including key pricing thresholds, and then coordinated trading with other defendants to ensure that their clients’ automatic trades (i.e., stop-loss orders) were triggered to the detriment of their customers.

To date, the lawsuit has resulted in more than $2.3 billion in settlements on behalf of U.S. investors. The plaintiffs have received final approval for all fifteen of these settlements. To learn more about the settlements, visit:

The plaintiffs are continuing to pursue their claims against the sole settlement holdout, Credit Suisse. On September 3, the U.S. District Court for the Southern District of New York certified a Rule 23(c)(4) class for over-the-counter trades and appointed Hausfeld as Co-Lead Counsel. The class was certified for the issues of whether a conspiracy to widen spreads in the FX spot market existed and whether Credit Suisse participated in the conspiracy.

In addition to the civil settlements, numerous government entities, including the U.S. Department of Justice (“DOJ”); the U.S. Commodities Futures Trading Commission ("CFTC"); the U.S. Office of Comptroller of the Currency ("OCC"); the Board of Governors of the Federal Reserve (“Federal Reserve”), U.K. Financial Conduct Authority ("UK-FCA"); the Swiss Financial Market Supervisory Authority (“FINMA”), the Administrative Council for Economic Defense (“CADE”), and the Competition Commission of South Africa (”CompCom”) have already levied fines of more than $10 billion against several defendant banks for their conduct with respect to foreign exchange. These investigations, among many others around the world, remain ongoing.

Hausfeld is also pursuing FX claims in Europe. You can read the press release on Hausfeld’s UK FX Collective Action here, and can find further information here.

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