A series of different banks have been sued over allegations the banks conspired to fix interest rates.
Sonterra Capital Master Fund filed the lawsuit on May 6 in U.S. District Court of New York against Barclays Bank PLC, Deutsche Bank AG and others claiming the banking institutions worked together to fix the Sterling London Interbank Offered Rate (LIBOR) and restricted competition from January 2005 to December 2010.
The LIBOR is considered the “benchmark” when it comes to interest rates around the world, the lawsuit said. The British Bankers' Association issues LIBOR and represents the “cost of borrowing funds in the inter-bank money market,” the lawsuit said.
Those named in the suit are contributing members of the BBA, and thus have an impact on the LIBOR.
According to the plaintiffs, Barclays, Deutsche Cooperatieve Centrale and the Royal bank of Scotland, worked together to drive the LIBOR in “an artificial direction,” and for making false bids in the Sterling money market in order to manipulate the market interest rates.
The plaintiffs are seeking class status in the suit, and are also seeking an unspecified amount in damages plus court costs.
The plaintiffs are represented by Geoffrey M. Horn, Vincent Briganti, Peter St. Philip, Raymond Girnys and Christian P. Levis of Lowey Danneberg Cohen & Hart, P.C. of White Plains, N.Y.
United States District Court for the Southern District of New York case number 1:15-cv-03538.