Barclays (NYSE: BCS), Citigroup (NYSE: C), JP Morgan (NYSE: JPM), Royal bank of Scotland (NYSE: RBS), and UBS (NYSE: UBS) are facing a GBP 1 Billion civil lawsuit over rigging the foreign exchange market.
The cases that come just a month after the European union fined many of the same banks with a combined EUR 1.07 Billion for manipulation of the foreign exchange market.
The new claimed that was filed on Monday at Competition Appeal Tribunal by Scott+Scott, the Us law firm, says that end investors such as pension funds, asset managers, hedge funds and corporations faced significant losses in currency trade as a result of market manipulation.
The lawsuit claims that the five banks unlawfully manipulated the foreign exchange market prices between 2007 and 2013. For being the first to whistle blow the case to the European regulator, UBS avoids a fine but is not exempted from facing civil claims. As part of the settlement with European authorities, the banks acknowledged their participation in a cartel and their liability for it. While Barclays, JPMorgan, Citi and RSB declined to comment, UBS has yet to respond to the case.
The lawsuit is being led by Michael O’Higgins, the former chairman of British watchdog the Pensions, Regulator, and is being funded by litigation finance group Therium, and could take three to five years involving thousands of institutional investors in line for payouts.