The Libor-based financial instruments antitrust litigation, which started back in August 2011, has seen some progress regarding settlement with one of the defendants – Deutsche Bank AG.

The case, which involves massive 351 parties, including Deutsche Bank, concerns alleged manipulation of U.S. Dollar LIBOR between August 1, 2007 and May 31, 2010. The New York Southern District Court has already approved $35 million in proceeds from previous settlements in this case.

The latest document filings in this lawsuit, seen by FX News Group, show that The Berkshire Bank and Government Development Bank for Puerto Rico (GDB) are asking the Court to approve their settlement with Deutsche Bank AG.

The “Settlement Class” is defined as:

“All lending institutions headquartered in the United States, including its fifty (50) states and United States territories, that originated loans, held loans, held interests in loans, owned loans, owned interests in loans, purchased loans, purchased interests in loans, sold loans, or sold interests in loans with interest rates based upon U.S. Dollar LIBOR between August 1, 2007 and May 31, 2010 (the “Class Period”)”.

Subject to the Court’s approval, Lender Plaintiffs, on behalf of the Settlement Class, have agreed to settle all claims against dismissed defendant Deutsche Bank in exchange for a cash payment of $425,000 and cooperation. If approved, this $425,000 will be added to the $35 million in proceeds from previous settlements.

According to the plaintiffs, this is a favorable result given the many inherent risks in litigation. They note that the settlement was reached through arm’s length negotiation over an extended period of time. The terms of the settlement were negotiated through extensive discussions over the course of several months.

In the absence of this settlement, the litigation of this complex case could likely consume many more years of the Court’s resources, the plaintiffs warn, adding that “the defendants are wealthy global financial institutions that are represented by some of the best law firms in the United States and can afford to litigate this case indefinitely”. Had the defendants not agreed to settle, they were prepared, and had the wherewithal, to vigorously contest liability.

Continuing to litigate against Deutsche Bank would be time-consuming and expensive and would involve complex legal and factual issues and vigorously contested motion practice, including summary judgment with no certainty of success, the plaintiffs say.

According to The Berkshire Bank and Government Development Bank for Puerto Rico, the settlement is an excellent result given the risks and procedural posture of the Action; it is fair, reasonable, and adequate under the governing standards, and warrants final approval.