Stay informed about any changes concerning the Plan of Allocation, the Fairness Hearing’s schedule and location, or any further directives from the Court, all related to the Euro Yen LIBOR and TIBOR manipulation case. Any updates or modifications will be promptly posted on this website. It is crucial to regularly check this site for the most current information, as no other notifications regarding these changes may be issued.
Case Overview: Allegations of Euro Yen Interest Rate Manipulation
This legal case, brought forth by Representative Plaintiffs, centers on allegations that various Defendant entities engaged in the manipulation, or aided and abetted the manipulation, of Yen-LIBOR, Euroyen TIBOR, and the prices of Euroyen-Based Derivatives. The timeframe of these alleged activities spans from January 1, 2006, through June 30, 2011.
The Plaintiffs contend that the Defendants employed multiple methods to carry out this manipulation. Specifically, it is alleged that Contributor Bank Defendants, responsible for the daily Yen-LIBOR and Euroyen TIBOR submissions to the British Bankers’ Association and Japanese Bankers’ Association, deliberately misrepresented their borrowing costs. This alleged misreporting was purportedly done to improperly benefit their positions in Euroyen-Based Derivatives.
Furthermore, the Contributor Bank Defendants are accused of soliciting false Yen-LIBOR and Euroyen TIBOR submissions from other Contributor Bank Defendants for their own benefit in the Euroyen-Based Derivatives market. The manipulation tactics also allegedly involved the use of inter-dealer brokers. These brokers, acting as intermediaries in money and derivatives markets, are accused of disseminating misleading “Suggested LIBORs,” publishing inaccurate market rates on broker screens, and injecting false bids and offers into the market to manipulate Yen-LIBOR, Euroyen TIBOR, and the prices of Euroyen-Based Derivatives.
The legal claims asserted by the Plaintiffs are based on a range of legal theories, including violations of federal antitrust law, the Commodity Exchange Act (CEA), the Racketeering Influenced and Corrupt Organizations (RICO) Act, and common law principles.
It’s important to note that SocGen has consistently and vehemently denied the Representative Plaintiffs’ allegations. Despite this denial, SocGen has entered into a Settlement Agreement with the Representative Plaintiffs. This decision was made to avoid the ongoing expenses, inconvenience, and disruptions associated with protracted and burdensome litigation, aiming to resolve the controversy and mitigate the inherent risks of complex legal proceedings.
Understanding Euroyen-Based Derivatives
To fully grasp the context of this case, it’s essential to understand what constitutes a “Euroyen-Based Derivative.” This term encompasses a range of financial instruments linked to Euroyen benchmarks:
- (i) Euroyen TIBOR Futures Contracts (CME): Futures contracts traded on the Chicago Mercantile Exchange based on Euroyen TIBOR.
- (ii) Euroyen TIBOR Futures Contracts (TFX, SGX, LIFFE): Futures contracts traded on the Tokyo Financial Exchange, Singapore Exchange, or London International Financial Futures and Options Exchange, specifically when entered into by a U.S. Person or from a location within the U.S.
- (iii) Japanese Yen Currency Futures Contracts (CME): Futures contracts on the CME based on the Japanese Yen currency.
- (iv) Yen-LIBOR/Euroyen TIBOR Based Interest Rate Swaps: Interest rate swaps based on Yen-LIBOR and/or Euroyen TIBOR, entered into by a U.S. Person or from a location within the U.S.
- (v) Options on Yen-LIBOR/Euroyen TIBOR Based Interest Rate Swaps (Swaptions): Options on swaptions based on Yen-LIBOR and/or Euroyen TIBOR, entered into by a U.S. Person or from a location within the U.S.
- (vi) Japanese Yen Currency Forward Agreements: Forward agreements related to the Japanese Yen currency, entered into by a U.S. Person or from a location within the U.S.
- (vii) Yen-LIBOR/Euroyen TIBOR Based Forward Rate Agreements: Forward rate agreements based on Yen-LIBOR and/or Euroyen TIBOR, entered into by a U.S. Person or from a location within the U.S.
Stay Updated on the Euro Yen Case
For the most current and accurate information regarding this case, including any modifications to the Plan of Allocation, the Fairness Hearing, or any further court orders, please continue to refer to this website. Regularly checking this site is essential to ensure you have the latest details as they become available.
