Financial service giant JPMorgan Chase & Co. has reached a
$100 million settlement to resolve a U.S. antitrust lawsuit that
sought damages for the alleged rigging of foreign currency
markets, in which investors accused 12 major banks of rigging
prices in the $5 trillion-a-day foreign exchange market in the case
of In re: Foreign Exchange Benchmark Rates Antitrust Litigation,
U.S. District Court, Southern District of New York, No.
JP Morgan will pay about $100 million and settled the case after
mediation with Kenneth Feinberg, an American attorney,
specializing in mediation and alternative dispute
resolution. Bank of America, Citigroup, HSBC, RBS and UBS also
settled with regulators in November for an additional $3.3
"The settlement represents a good signal by JP Morgan in
addressing its involvement,"
John Norton, Senior Associate at Giambrone's Forex
Litigation team, who represents several investors in similar claims
"We hope that other banks will follow the same approach. This
settlement will undoubtedly put pressure on the other eleven banks
to follow suit and represents the beginning to establish the
accountability of these banks engaged in the same trading in
Europe, to avoid lengthy and expensive litigation for the victims
of this currency manipulation scandal"
Giambrone is currently representing several wealthy
investors and institutional organisations in
similar forex manipulation lawsuits against all banks
involved in the forex trading scandal. Other
defendants include Bank of America Corp,
Barclays Plc, BNP Paribas SA, Citigroup Inc,
Credit Suisse Group AG, Deutsche
Bank AG, Goldman Sachs Group
Inc, HSBC Holdings Plc, Morgan
Stanley, Royal Bank of
Scotland Group Plc and UBS AG.
The lawsuits charged the banks of allegedly rigging currency
rates to boost profit at the expense of customers and investors.
The 12 banks held an 84 percent global market share in currency
trading, and were counterparties in 98 percent of U.S. spot
The 2013 lawsuit is separate from criminal and civil probes
worldwide into whether banks rigged currency rates to boost profit
at the expense of customers and investors.
JPMorgan agreed in November to pay roughly $1.01 billion to
resolve such probes by U.S. and European regulators. In their
complaint, investors including the city of Philadelphia, hedge
funds and public pension funds accused the 12 banks of having
conspired since January 2003 in chat rooms, instant messages and
emails to manipulate the WM/Reuters Closing Spot Rates.
They said traders would use such names as The Cartel, The
Bandits' Club and The Mafia to swap confidential orders, and
set prices through manipulative tactics such as "front
running," "banging the close" and "painting the
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