In re SSA Bonds Antitrust Litigation
- Valerie Caproni
- 1:16-cv-03711
- U.S. District Court · Southern District of New York
- 9
In re SSA Bonds Antitrust Litigation: Judge Ramos approved the HSBC settlement, certified a settlement class, and entered a dismissal order.
The settlement affects the certified settlement class and HSBC Securities (USA), Inc. and HSBC Bank plc. Covered claims against HSBC and other released parties are released when the settlement becomes effective, while claims against other defendants and alleged co-conspirators are preserved as stated in the order.
What happened
In re SSA Bonds Antitrust Litigation concerns a proposed settlement between the class plaintiffs and HSBC Securities (USA), Inc. and HSBC Bank plc in an antitrust class action involving SSA bond transactions. The court reviewed the settlement record, notices, and objections.
The court certified a settlement class solely for purposes of the settlement, appointed class representatives and co-lead counsel, and found that the required class-action standards were met. The settlement was only a partial settlement, so claims against other defendants and alleged co-conspirators were preserved.
Judge Edgardo Ramos granted final approval of the settlement as fair, reasonable, adequate, and in the class members’ best interests, and entered the Final Judgment and Order of Dismissal as to HSBC. The order releases covered claims after the settlement becomes effective, while allowing claims outside the releases and claims enforcing the settlement to continue.
The detailed version
- In re SSA Bonds Antitrust Litigation · No. 1:16-cv-03711
- Valerie Caproni
- Apr. 2, 2021
Background
The court considered the class plaintiffs’ request for final approval of a settlement with HSBC Securities (USA), Inc. and HSBC Bank plc. The settlement was documented in a December 20, 2018 settlement agreement. The court stated that notice had been provided to the settlement class under its earlier orders and that the 90-day notice period required by the Class Action Fairness Act had been satisfied.
Settlement class and representation
For settlement purposes only, the court certified a class consisting generally of persons and entities that entered into an SSA bond transaction with a defendant, a related entity, a released party, or an alleged co-conspirator between January 1, 2009, and the date of the preliminary approval order, subject to the geographic and commerce conditions stated in the order. The class excluded the defendants, identified alleged co-conspirators and specified related persons, and federal governmental entities, while providing that investment vehicles were not excluded.
The court found that the requirements for class certification under Rules 23(a) and 23(b)(3) were satisfied solely for settlement purposes. It found that the class was numerous, that common questions predominated, that the class plaintiffs’ claims were typical, that the class plaintiffs and co-lead counsel adequately represented the class, and that a class action was the superior method for resolving the dispute. The court appointed Quinn Emanuel Urquhart & Sullivan, LLP and Robbins Geller Rudman & Dowd LLP as co-lead counsel, and appointed the class plaintiffs as class representatives, also solely for settlement purposes.
Final approval
Under Rule 23(e), the court granted final approval of the settlement, finding it fair, reasonable, adequate, and in the best interests of the settlement class. The court relied on the settlement record and considered the factors identified in Rule 23(e)(2) and the cited Second Circuit authority. It found that the settlement was negotiated at arm’s length and in good faith by experienced counsel; that the case involved serious and contested legal and factual issues; that an immediate monetary recovery and cooperation benefits outweighed the possibility of relief after lengthy and costly litigation; and that continued litigation might not produce a better result.
The court described the agreement as a partial settlement in a multi-defendant antitrust case. It stated that, if the class plaintiffs proved their claims at trial, other current and future defendants would remain liable for class damages under principles of joint and several liability. The order does not state the amount of the settlement.
Releases, preserved claims, and dismissal
Upon the settlement’s effective date, persons covered by the releases will waive and release the defined released claims against the released parties and will be barred from bringing or assisting claims within the releases. The released parties will likewise release covered claims against the class plaintiffs, settlement class members, and co-lead counsel. Claims outside the scope of the releases, and claims to enforce the settlement agreement, are not released.
The order also bars certain contribution, indemnification, or similar claims against released parties to the extent permitted by law. At the same time, the rights of settlement class members to pursue claims against other defendants, formerly named defendants, alleged co-conspirators, or other persons—other than HSBC and released parties for released claims—were expressly reserved. The order further states that HSBC’s purchase, sale, and trading of SSA bonds may remain relevant to damage claims against those other persons to the extent permitted by law.
The court entered the Final Judgment and Order of Dismissal as to HSBC Securities (USA), Inc. and HSBC Bank plc. The order requires the parties to carry out the settlement and directs immediate entry of the judgment under Rule 54(b). If the settlement does not become effective, the judgment and related releases will become null and void as provided in the order. The court retained continuing and exclusive jurisdiction to implement, administer, interpret, and enforce the settlement and to address related funds, fee, expense, and incentive-award matters.
Judge
Judge Edgardo Ramos signed the order on April 2, 2021.
Read the full 9-page opinion on CourtListener, the free public archive maintained by the Free Law Project.