Deutsche Bank Reaches $190M FX Settlement, Leaving Credit Suisse

By Chris Bruce

Investors Sept. 29 asked a federal judge to approve a $190 million agreement with Deutsche Bank to settle claims the financial institution rigged currency prices in the foreign exchange market.

The proposed settlement, if approved by the court, would leave Credit Suisse as the only remaining financial institution defendant in the case, which was filed in 2013 ( In re Foreign Exchange Benchmark Rates Antitrust Litig. , S.D.N.Y., 13-cv-07789, proposed settlement 9/29/17 ).

The suit alleged a conspiracy by a host of large financial institutions to manipulate foreign exchange pricing between 2007 and 2013. Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York is overseeing the case.

If approved, the proposed accord would bring the settlement total in the case to more than $2.3 billion, according to a Sept. 29 statement by Michael D. Hausfeld, chairman of the Hausfeld law firm, which serves as co-lead counsel along with the Scott + Scott firm.

“After hard-fought negotiations, this settlement will return a substantial sum to the already historic recoveries on behalf of U.S. investors,” Hausfeld said. “Deutsche Bank’s cooperation will help in permitting the class to seek recovery from the final institution in the case as the case proceeds toward trial.”

Deutsche Bank spokesman Troy Gravitt declined to comment on the case. Credit Suisse spokeswoman Nicole Sharp also declined to comment. It’s not clear how much the plaintiffs are still seeking from Credit Suisse. Deborah Schwartz, a spokeswoman for the Hausfeld firm, declined to comment.

To contact the reporter on this story: Chris Bruce in Washington at cbruce@bna.com

To contact the editor responsible for this story: Michael Ferullo at MFerullo@bna.com

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