In Re: Libor-Based Financial Instruments Antitrust Litigation
1:11-md-02262
S.D.N.Y.Nov 18, 2014Background
- Exchange-Based Plaintiffs seek reconsideration and leave to amend in three actions in MDL 2262 and 11 Civ. 2613 (S.D.N.Y.).
- LIBOR III rejected trader-based claims outside 2005–2007 time frame and rejected the merits of new allegations.
- Plaintiffs sought to add post-2007 trader-based claims; court considered letters and briefing from Aug.–Sept. 2014.
- Plaintiffs also sought to amend to add Lloyds and Rabobank as defendants with trader-based manipulation theories.
- Court reiterates inquiry-notice framework under the Commodities Exchange Act and prior LIBOR decisions; motions denied on merits and as untimely.
- Order issued November 7, 2014, denying all three amendments and related reconsideration requests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reconsideration of LIBOR III on inquiry notice timing | Plaintiffs contend LIBOR III misapplied inquiry notice to post-2007 claims. | Court previously held notice began 2008; changes not warranted. | Denied; reconsideration not warranted; on-notice timing remains. |
| Leave to amend to add Lloyds trader-based claims | Lloyds 2008–2009 dates and DOJ/CF TC materials support amendment. | Time-barred 2008 date; no evidence of artificial submission in 2009; amendment futile. | Denied; claims time-barred or inadequately supported. |
| Leave to amend to add Rabobank agreement with Lloyds | Proposed Yen LIBOR settlements show possible USD LIBOR manipulation. | Settlement evidence speculative; lacks direct link to Rabobank-US LIBOR manipulation. | Denied; amendment speculative and insufficiently supported. |
Key Cases Cited
- In re Fosamax Prods. Liab. Litig., 815 F. Supp. 2d 649 (S.D.N.Y. 2011) (reconsideration and notice issues discussed in complex MDL)
- Koch v. Christie’s Int’l PLC, 699 F.3d 141 (2d Cir. 2012) (inquiry notice and duty to inquire under securities/commodities fraud)
- In re LIBOR-Based Fin. Instruments Antitrust Litig., 935 F. Supp. 2d 666 (S.D.N.Y. 2013) (LIBOR I: inquiry notice framework and limitations analysis)
- In re LIBOR-Based Fin. Instruments Antitrust Litig., 962 F. Supp. 2d 606 (S.D.N.Y. 2013) (LIBOR II: pleading standards for trader-based manipulation)