FTC Capital GMBH v. Credit Suisse Group AG

Background

The opinion is a final judgment and approval order in a class action concerning persons and entities that transacted in Eurodollar futures or options on Eurodollar futures between January 1, 2003, and May 31, 2011. The hearing concerned the Exchange-Based Plaintiffs’ motion for final approval of settlements with several defendants. The order specifically addresses the settlement agreement with JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., Bank of America Corporation, and Bank of America, N.A., referred to as the settling defendants.

Settlement Class and Notice

For settlement purposes only, the court finally certified a class consisting of persons, corporations, and other legal entities that made the specified Eurodollar transactions during the class period, subject to stated exclusions. The court found that the requirements of Federal Rule of Civil Procedure 23(a) and Rule 23(b)(3) were satisfied for the settlement, including numerosity, common questions, typicality, adequate representation, and the superiority of a class action.

The court approved Lovell Stewart Halebian Jacobson LLP and Kirby McInerney LLP as settlement class counsel. It found that the mailed, published, website, and other notices were the best practicable notice under the circumstances and complied with Rule 23, due process, and other applicable requirements. The court confirmed A.B. Data, Ltd. as settlement administrator. The six entities listed in Exhibit A that timely and validly requested exclusion were excluded from the settlement and could not claim benefits under it.

Ruling

The court finally approved the settlement under Rule 23(e)(2), finding it fair, reasonable, adequate, and in the best interests of the settlement class. It found that the settlement resulted from arm’s-length negotiations and that the plaintiffs and class counsel adequately represented the class for settlement purposes. The parties were directed to carry out the settlement according to its terms.

Except for individual claims by opt-outs, all settlement-class members were bound by the settlement. Their released claims against the releasees were dismissed with prejudice and released. The order expressly stated that the plaintiffs’ claims against non-settling defendants were not dismissed and were not subject to the order.

The court approved the revised plan for distributing the settlement fund, approved creation of a qualified settlement fund, and retained exclusive jurisdiction over implementing and enforcing the settlement, the order, the settlement fund, and related disputes. The request for attorneys’ fees, expense reimbursement, and service awards was reserved for a separate order. The settlement and order were not admissions of wrongdoing, liability, the truth of the allegations, or damages.

Classification Basis

This is a procedural order because the court approved a class settlement and related administration without deciding the underlying antitrust claims on their merits.