Credit Suisse inches closer to $13.75M settlement in CHF LIBOR lawsuit
The plaintiffs in a CHF LIBOR lawsuit targeting Credit Suisse Group AG and Credit Suisse AG seek the Court’s approval of a proposed $13,750,000 settlement. This becomes clear from documents submitted at the New York Southern District Court on July 13, 2022.
The settlement negotiations with Credit Suisse took place over several months beginning in August 2021. Interim Lead Counsel for the plaintiffs engaged in lengthy negotiations with Credit Suisse’s counsel over the material terms of the settlement, including the amount of the settlement consideration, the scope of the cooperation to be provided by Credit Suisse, the scope of the release, and the circumstances under which the Parties would have the right to terminate the settlement.
After almost a year of discussions in which the parties exchanged competing views on liability and damages, Plaintiffs and Credit Suisse executed the Settlement Agreement on July 13, 2022.
The proposed Settlement Class under the Settlement is defined as:
All Persons (including both natural persons and entities) who purchased, sold, held, traded, or otherwise had any interest in Swiss Franc LIBOR-Based Derivatives during the period of January 1, 2001 through December 31, 2011 (the “Class Period”), provided that, if Representative Plaintiffs expand the Class in any subsequent amended complaint, class motion, or settlement, the defined Class in this Agreement shall be expanded so as to be coterminous with such expansion. Excluded from the Settlement Class are the Defendants and any parent, subsidiary, affiliate or agent of any Defendant or any co-conspirator whether or not named as a Defendant, and the United States Government.
In addition to the settlement payment, Credit Suisse will provide Cooperation Materials that will advance the litigation against non-settling Defendants UBS and the Broker Defendants, identify potential Class Members, and (if necessary) further validate the Distribution Plan proposed by Representative Plaintiffs.
In exchange, the Settlement provides that the Releasing Parties will finally and forever release and discharge from and covenant not to sue the Released Parties for the Released Claims.
This Court previously preliminarily approved Plaintiffs’ $22,000,000 Settlement with JPMorgan Chase & Co. Two other settlements were recently proposed for preliminary approval.
If finally approved, the four Settlements will recover a total of $69,750,000 for the Settlement Class.