UPDATE: Due to ongoing settlement discussions with non-settling defendants, the mailing of the settlement notice and claim forms has been postponed. Chicago Clearing Corporation will continue to monitor this case and will post any relevant news pertaining to the existing settlement or to any new settlements. Please see more recent blog posts. We will continue to add news about this litigation as it occurs.
When class members receive settlement notices in the Foreign Exchange Benchmark Rates Antitrust Litigation, each eligible claimant will have the option to either accept the claims administrator's claim calculation based on the settling defendant's data or to submit their own data to substantiate the claim. This post will explain why many investors, if not most, would benefit from an audit of their estimated claim.
Let’s begin with a quick run-down of the settlement and the plaintiff’s Plan of Distribution:
Settlement amount: $2,009,075,000.
Please note that this pool represents the combined funds from nine settling defendants. (Bank of America, Barclays, BNP Paribas, Citigroup, Goldman Sachs, HSBC, JPMorgan, Royal Bank of Scotland, and UBS.) There are still seven remaining non-settling defendants. If they eventually settle, then there will be considerably more funds available to eligible class members. (The remaining non-settling defendants are the Bank of Tokyo Mitsubishi UFJ Ltd., Credit Suisse Group AG and Credit Suisse Securities, Deustche Bank Securities and Deutsche Bank AG, Morgan Stanley, RBC Capital Markets, Societe Generale SA, and Standard Charter Bank.)
Class Period: January 1, 2003 to December 15, 2015.
Class Description: First there is the direct settlement class: anyone "who entered into an FX Instrument between January 1, 2003 and December 15, 2015 with a Defendant Party, direct or indirect parent, subsidiary, or division of a Defendant, or co-conspirator." (This quote and the next are from the proposed notice, recently approved by the court.) Next is the exchange-only or indirect settlement class. This part consists of anyone "who entered into an FX Exchange-traded Instrument between January 1, 2003 and December 15, 2015."
Important Information about this Class Period: Usually the class period is simple—a straight forward date range. In this case, it is more complicated. According to the Plan of Distribution, “Settling Defendants have produced transaction data generally covering the time period January 1, 2008 to December 15, 2015; some of the Settling Defendants have produced data for additional years; and some have produced data for fewer years.”
This means that the period from January 1, 2003 to January 8, 2008 will be estimated—though that range may vary depending on the settling defendant.
Should you accept the administrator’s estimate? Many, if not most, claimants would benefit from an audit of their potential claims. The claims administrator will provide the option to submit a “Documented Claim.” This, the plaintiffs say in their Plan of Distribution, “is designed for Claimants with high transaction volumes and accessible trading records.” Submitting a Documented Claim is the best way to receive the recovery you deserve.
Why CCC? CCC has considerable experiencing auditing claims in complex antitrust and securities settlements. Recently, CCC audited claims in the Credit Default Swaps Antitrust litigation. It was a similar case: a claim form and an option to accept or reject the estimate. CCC submitted revised claims for 160 class members and recovered over $110 million. Many of our clients received substantially more than they would have received had they accepted the prepared claim.
Call us at 312-204-6970. If you receive a notice packet and claim form in the Forex Antitrust Settlement (or don’t, but believe you should have!) then give us a call. We will be happy to review your claim. There is no cost to you for a review.