Deutsche Bank Trader Fired Over Libor Sues for Past Bonuses

Updated on

A trader fired by Deutsche Bank AG as part of its Libor-rigging settlement is suing over bonus payments that may total more than 5 million pounds ($7.7 million).

Yves Paturel filed the suit along with a second trader, Gavin Black, in a London court in January, months before the pair were dismissed in April as part of Deutsche Bank’s settlement for manipulation of the London interbank offered rate with the New York Department of Financial Services. Black has withdrawn his claim, according to his lawyer.

Paturel and Black were seeking “damages for breach of contract” in relation to bonuses for 2008 and 2009, according to the filing, made available by the court Wednesday. Paturel is the latest in a number of dismissed employees to sue the bank over Libor-related disputes. Four German traders fired in 2013 were reinstated the same year after suing for wrongful termination.

The Frankfurt-based lender paid a record $2.5 billion in fines to settle U.S. and U.K. investigations into its role in rigging Libor. The misconduct involved at least 29 Deutsche Bank individuals including managers, traders and rate-submitters, primarily based in London but also in Frankfurt, Tokyo and New York, the U.K. Financial Conduct Authority said.

Deutsche Bank said in an e-mailed statement that Paturel’s claim is without merit and the bank will contest it. It declined to comment on Black. Alexandra Carn, a lawyer for Paturel and Black in London, didn’t comment beyond saying Black’s claim had been withdrawn. She declined to comment on whether the amount sought in the lawsuit would change due to the absence of Black.

Paturel and Black were two of seven individuals fired in April, according to people familiar with the matter at that time. Some hadn’t been informed until the day of the settlement.

The case is Paturel v. DB Group Services (UK) Limited. High Court of Justice Queen’s Bench Division, HQ15X00205.

(Updates in first paragraph to show that one claim was withdrawn.)
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