FTC Capital GMBH v. Credit Suisse Group AG

Background

The court held a fairness hearing on the plaintiffs’ request for final approval of class-action settlements with Bank of America, Barclays Bank plc, Citi, Deutsche Bank, HSBC Bank plc, JPMorgan, and Société Générale. The case concerned claims by persons and entities that traded Eurodollar futures or options on Eurodollar futures on exchanges, including the Chicago Mercantile Exchange, during the period from January 1, 2003, through May 31, 2011. The opinion states that the settlement-related claims included allegations concerning manipulation of U.S. Dollar LIBOR and alleged conspiracies or collusion, but the settlement and order were not admissions of wrongdoing, liability, damages, or the truth of those allegations.

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 transactions during the relevant period. Defendants, their employees, affiliates, parents, subsidiaries, and alleged co-conspirators were excluded, as were the defined releasees and people who submitted timely and valid requests for exclusion. The court found that the requirements of Federal Rule of Civil Procedure 23(a) and Rule 23(b)(3) were met for settlement purposes, including numerosity, common questions, typical claims, adequate representation, and the superiority of a class action.

The court found that the mailed, published, website, and other notices were the best practicable notice and adequately informed class members about the settlement, exclusion and objection rights, the fairness hearing, the distribution plan, and the request for attorneys’ fees and expenses. It also found that the notice program satisfied Rule 23, due process, and the Class Action Fairness Act’s notice requirements. The court confirmed A.B. Data, Ltd. as settlement administrator and designated Lovell Stewart Halebian Jacobson LLP and Kirby McInerney LLP as settlement class counsel for settlement purposes.

Ruling

Judge Naomi Reice Buchwald finally approved the settlements under Rule 23(e)(2), finding them fair, reasonable, adequate, and in the best interests of the settlement class. The court found that the settlements resulted from arm’s-length negotiations and directed the parties to carry them out. It also approved the revised plan of distribution and approved the settlement fund’s establishment as a qualified settlement fund.

Except for individual claims by people and entities that opted out, the order made class members and other defined releasors bound by the settlement. The released claims against the releasees were dismissed with prejudice and released. The order also barred specified contribution and indemnification claims, approved the settlement releases and related covenants not to sue, and reserved the court’s jurisdiction to administer and enforce the settlements. Claims by the exchange-based plaintiffs against non-settling defendants were not dismissed and were not subject to this order.

The court provided that if the settlement did not become effective under the settlement agreement, the dismissal provisions, class certification, settlement approval, and related actions would be vacated, the claims and defenses would be reinstated, and the parties would be returned to their prior positions as specified in the order. The request for attorneys’ fees, expense reimbursement, and class representative service awards was left for a separate order.