Barclays and RBS among banks hit by £1bn forex rigging lawsuit

Source: CITY A.M. | Author: James Booth

Barclays and the Royal Bank of Scotland (RBS) are among five banks targeted in a £1bn class action lawsuit over forex rigging that was filed today.

The action follows a May ruling by the European Commission that Barclays, RBS, JP Morgan, Citibank, and UBS had violated EU competition law.

The five banks have been collectively fined more than $8.5bn (£6.9bn) by eleven global regulators.

The Commission said the banks had coordinated their trading strategies via two cartels, exchanging commercially sensitive information and trading plans.

The claim is being brought through the Competition Appeal Tribunal (CAT) as a collective action on an opt out basis, so all members of the class will be automatically included.

Former Pensions Regulator chair Michael O’Higgins is acting as the class representative.

“The fines imposed on the banks by the European Commission were an important first step, but they will not compensate those who were damaged or suffered losses.  Just as compensation has been won in the US, our legal action in the UK will seek to return hundreds of millions of pounds to pension funds and other corporates who were targeted by the cartel,” O’Higgins said.

US claimant law firm Scott + Scott is bringing the claim with backing from litigation funder Therium.

Scott+Scott obtained over $2.3bn in settlements after a class action against 15 banks in the US for forex rigging with final approval granted in August 2018.

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