JPMorgan has decided to settle litigation with US law firm Scott+Scott related to foreign exchange benchmark manipulations. The major US bank has agreed to pay a total of $99.5 million to settle a potential class action lawsuit.
A number of market participants, including hedge funds, public pension funds and other market participants have filed the case after it became known that JPMorgan was amongst banks participating in the manipulation of foreign exchange fixing rates.
The settlement also calls for JPMorgan to cooperate in providing information to assist in the prosecution of the claims against the remaining defendants. This includes proffers, production of documents, interviews and testimony.
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Managing partner of Scott+Scott, David R. Scott, commented, “This crucial first settlement offers victims not just monetary relief, but cooperation from JPMorgan that will support their claims against the remaining eleven major banks that entered into the long-running conspiracy to manipulate the FX market.”
The law firm’s head of antitrust practice, Christopher M. Burke, added, “This settlement is a significant early victory for the class, especially given the prominence of JPMorgan and their lawyers. We believe it will assist us in prosecuting this matter to a successful conclusion.”
The defendants’ motion to dismiss was denied by the Court on January 28, 2014. In November 2014, US and European regulators imposed $4.3 billion in civil fines on six of the defendant banks.