Sullivan v. Barclays PLC

Background

The plaintiffs sought final approval of a settlement with Société Générale in the class action Sullivan v. Barclays PLC. The action concerned alleged manipulation of Euribor and prices of financial products tied to Euribor. The order approved the settlement only as to the settling parties and did not resolve claims against the other named defendants.

Settlement Class and Notice

For settlement purposes, the court finally certified a class consisting of persons who purchased, sold, held, traded, or otherwise had an interest in defined Euribor products from June 1, 2005, through March 31, 2011, and who were domiciled in the United States or its territories or conducted the specified transactions there. The class included certain trades in CME Euro currency futures, NYSE LIFFE Euribor futures and options, and other Euribor products traded from a United States location.

The court reconfirmed that the requirements of Federal Rule of Civil Procedure 23 were satisfied for purposes of the settlement. It found that the class was sufficiently numerous, that common questions existed, that the plaintiffs’ claims were typical, and that the plaintiffs and class counsel adequately represented the class. It also found that common issues predominated and that a class action was superior to other methods of resolving the dispute.

The court found that the mailed, published, website, and other notices were the best practicable notice and adequately informed class members about the action, the settlement, exclusion and objection rights, the hearing, the distribution plan, attorneys’ fees, expenses, and incentive awards. Seven class members validly requested exclusion, and no objections were submitted.

Final Approval and Releases

After independently reviewing the settlement, the court found it fair, reasonable, adequate, and in the best interests of the settlement class. It found that the agreement resulted from arm’s-length negotiations between experienced counsel and that the plaintiffs and class counsel adequately represented the class for settlement purposes. The court finally approved the settlement and directed the parties to carry it out according to its terms.

The order bound all settling class members, whether or not they submitted a proof of claim and release. It dismissed with prejudice and released the defined claims against Société Générale and the specified released parties. The released claims covered claims arising from or relating to the conduct alleged, or that could have been alleged, in the action concerning Euribor, Euribor products, and similar financial instruments, including claims under the Commodity Exchange Act, the Sherman Act, the Racketeer Influenced and Corrupt Organizations Act, and other laws. The order stated that claims against the other named defendants were not released by this settlement.

The court approved the release and covenant-not-to-sue process for receiving a distribution, while stating that the claims would be released regardless of whether a settling class member executed that document. It also declared that the settlement and order would have claim-preclusion effect for covered claims and permanently barred related lawsuits, class proceedings, and assistance to others pursuing those claims against Société Générale or the released parties. The order further barred specified contribution, indemnification, setoff, and similar claims relating to the released claims.

Other Provisions and Disposition

The court approved the proof-of-claim form and distribution plan, approved the settlement fund’s qualified-settlement-fund structure, confirmed A.B. Data, Ltd. as claims administrator, and required confidentiality for class members’ submitted data except as authorized by the order or a later court order. The court reserved exclusive jurisdiction over implementation, enforcement, disputes, administration costs and fees, and distributions.

If the settlement were validly terminated, disapproved, or failed to become effective, the order’s settlement-related dismissals, releases, class certification, and related actions would be vacated as provided in the order, and the parties would return to their positions before signing the settlement agreement. The court’s settlement-only class certification was also stated not to affect later class-certification requests or challenges involving other defendants.

Judge P. Kevin Castel therefore entered a final approval order approving the settlement, the settlement class, the releases, and the related administration provisions.