UBS AG Foots $135 Million Bill To Settle Currency Antitrust Case

By Hamsa Mahendranathan

UBS AG reached a $135 million settlement with plaintiffs today in the In re Foreign Exchange Benchmark Rates Antitrust Litigation in the U.S. District Court for the Southern District of New York.

UBS AG is the second bank to settle in this case—JPMorgan Chase & Co. settled with plaintiffs for $99.5 million in late January.  In addition to the settlement payments, both UBS AG and JPMorgan Chase & Co. have agreed to provide plaintiffs with documents and other assistance in pursuing their claims against the remaining defendants.  The settlements come on the heels of Judge Lorna G. Schofield’s decision on January 28, 2015, denying defendants’ motion to dismiss.

In re Foreign Exchange Benchmark Rates Antitrust Litigation is a consolidation of several class actions which allege that Barclays Bank PLC, Citigroup, Inc., and others, violated U.S. antitrust laws by conspiring to manipulate foreign exchange rates.

The U.S. Department of Justice (the “DOJ”) is conducting its own investigation and has requested a limited stay of discovery in the case.  While the court has yet to respond to the request, a letter that the DOJ sent to the court on March 9 indicates that the parties have agreed to a limited stay of discovery for six months.  Despite the potential discovery stay, the UBS AG settlement will undoubtedly increase pressure on the remaining defendants to settle as well.

– Edited by Gary J. Malone