Unlikely Provocateur Emerges to Challenge LIBOR Class Settlements

Earlier this month, Partner Les Jacobowitz spoke with Reuters after the Virgin Islands Public Finance Authority filed an objection to Citigroup Inc.’s proposed $130 million settlement of a class action.

This class action stemmed from the bank’s role in the manipulation of the London InterBank Offered Rate from August 2007 through May 2010.

Reuters reported “the objection asserts that class counsel have not disclosed any estimate of the total damages to the class from LIBOR manipulation,” while analysis shows damages to be at least $23 billion. “In that context, the Virgin Islands objection said, a $130 million settlement with Citigroup is inadequate.

“The objections are specific to this case” said Les. “We believe the classes are not being adequately compensated.” To read the article, click here.


Continue Reading