- Citi agrees to cooperate with plaintiffs suing other banks
- Settlement is first in suit targeting 21 banks, 3 brokerages
Citigroup Inc. agreed to pay $23 million to settle claims it conspired to manipulate the benchmark yen Libor rate and said it will cooperate with plaintiffs suing other banks, according to court papers filed late Monday in Manhattan federal court.
The agreement, which the investors suing the banks called an “ice-breaker settlement” intended to encourage other banks to settle, is the first in a suit filed in July targeting 21 banks and three brokerage firms. One of the brokerages, London-based RP Martin Holdings Ltd., also agreed to provide evidence to the investors as part of the settlement.
The settlement with Citigroup was reached Aug. 11, according to the filing. RP Martin settled Dec. 3, 2014. The agreements must be approved by a judge before they can take effect.
“We are pleased to have the matter resolved,” Danielle Romero-Apsilos, a Citigroup spokeswoman, said in an e-mailed statement.
Vincent Briganti, a lawyer for Sonterra Capital Master Fund, Hayman Capital Management and the California State Teachers’ Retirement System, said the early settlement with Citigroup reflected its relatively limited involvement in the alleged rate-fixing. The parties delayed in presenting the settlements to the court for approval due to issues related to the defendants’ cooperation and how the settlement would be put into effect, he said.
Banks remaining as defendants in the case include UBS Group AG, Deutsche Bank AG, Royal Bank of Scotland Plc and HSBC Holdings Plc.
The case is Sonterra Capital Master Fund Ltd. v. UBS AG, 15-cv-05844, U.S. District Court, Southern District of New York (Manhattan).
C US (Citygroup Inc.)